IT figures added up

SECURITY, COMPLIANCE, infrastructure management and business intelligence are the tech spending drivers this year.

So said researcher IDC.

And "optical equipment, wireless networks, and an overwhelming need for IP bandwidth continues to drive growth in network equipment spending," added David Emberley, research manager of IDC's Worldwide Telecom Black Book.

A whopping $61 billion will be spent on networks in 2005 with a 2004-2009 compound rate of growth exceeding 10%. Asia/Pacific growth with be strongest with India surpassing China as the biggest spender.

IDC's latest research urged caution saying first quarter spending was as expected but that worsening conditions might affect budgets going forward.

The Western Europe IT market is now expected to grow by only 4% this year. In Japan, IT spending will increase by just 1% while U.S. technology spending is expected to grow by 5%, it said.

Over the next five years, IDC expects to see worldwide IT market growth which slightly outpaces nominal GDP growth. "The global IT market will expand at a compound annual growth rate of 6.0% between 2005 and 2009," said Juan Orozco, research manager, Worldwide IT Markets. "Assuming economic stability, IT budgets should continue to grow in every region with emerging markets like China, India and Russia exhibiting the strongest growth opportunities."

IDC says higher interest rates, oil prices, and currency fluctuations are all potential wild cards which could impact business confidence and investment.

We say: aren't they always? µ

L'INQ
IDC ress release

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