Gartner Says Industry Vertical Market IT Spending Will Contract by 6.8 Percent in 2009
Worldwide industry vertical market IT spending is projected to total $2.28 trillion in 2009, a 6.8 percent decline from 2008, according to Gartner, Inc. Analysts predict the market will return to growth in 2010, when it will grow at 2.3 percent 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 expected 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 totalling $502.6 billion in 2009; however, this segment will decline 8.3 percent. The agriculture, mining and construction market will experience the steepest decline in IT spending this year, declining 9.2 percent. The national and international government industry will show the slowest decline in IT spending as revenue decreases 3.6 per cent.
Gartner recommends that technology and service providers plan their 2010 marketing campaigns, sales and service engagements with clearer value propositions aimed at the chief financial officer (CFO) and strategic business unit (SBU) leaders and with account teams composed and trained to execute in a changed sales environment.
“This deep and prolonged recession has the potential to create a new market environment with stronger spheres of financial and business influence in many industries’ IT buying centers,” said Mr. Brant.
“Vendors should develop and/or expand financial models for project justification and sales training on selling to the financial buyer and business leader.”
Additional information is available in the Gartner report “Dataquest Alert: Forecast, IT Spending in Industries, Worldwide, 3Q09 Update.”
The report is available on Gartner’s Website at http://www.gartner.com/resId=1201463.
About Gartner
Gartner, Inc. (NYSE: IT) is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has 4,000 associates, including 1,200 research analysts and consultants in 80 countries. For more information, visit www.gartner.com.
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