Vertical market IT spending to decline 6.8% in 2009

Thu, Nov 5 01:50 AM

Before the IT industry could start expecting some improvement in the Budget scenario for the coming year; Gartner has projected a decline of 6.8% across the worldwide industry vertical market IT spending in 2009 to $2.28 trillion from $2.45 trillion in 2008. According to Gartner's report, 'Forecast, IT spending in industries, worldwide, 3Q09 update', the market will return to growth in 2010, when it will grow at 2.3% to reach $2.34 trillion.

"Our expectations for when the market will return to positive growth in IT spending-and for how strong that growth will be-vary significantly by industry sector, with the majority of industries expecting to enter a period of sustained, positive growth in 2011," said Kenneth Brant, research director at Gartner. "The three largest industry segments in 2008-financial services, manufacturing and government-will remain the largest industry markets worldwide through 2013."

Financial services will lead all industry vertical markets, with IT spending at $502.6 billion in 2009; however, this segment will decline 8.3%. The agriculture, mining and construction markets will experience the steepest decline in IT spending this year, a dip of 9.2%. The national and international government industries will show the slowest decline in IT spending as revenue decreases 3.6%. "This deep and prolonged recession has the potential to create a new market environment with stronger spheres of financial and business influence in IT buying centers of many industries," said Brant. "Vendors should develop and/or expand financial models for project justification and sales training on selling to financial buyers and business leaders."

Gartner, in the report, said that technology and service providers should plan their 2010 marketing campaigns, sales and service engagements with clearer value propositions aimed at the chief financial officer and strategic business unit leaders. The account teams should be trained accordingly to work in a changed sales environment.

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