Information technology spending increased 5% in 2011, despite the worsening economic situation in Western Europe and volatility in other regions, according to a new study from the IDC Worldwide Black Book. IDC noted that emerging markets continued to lead the way, with tech spending in the BRIC countries (Brazil, Russia, India and China) enjoying another year of double-digit growth.
According to IDC, the strongest growth in 2011 came from smartphones (46% growth), software (6% growth) and disk storage systems (6% growth).
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In U.S. dollar terms, the IT industry grew by almost 9% in 2011, but year-to-year comparisons could be difficult for U.S.-based IT vendors this year if currency conditions are less favorable.
The macroeconomic crisis in Europe has had a severe impact on IT spending in that region. Overall IT investment was flat in 2011, with a slowdown in spending on PCs, servers, storage, peripherals and enterprise network equipment. The recovery in Europe is expected to take some time, with less than 1% growth this year and 3% in 2013.
For 2012, IDC projects in constant currency another year of 5% growth for worldwide IT spending. Hardware and software spending are each forecast to increase by 6% (in constant currency), with 4% growth in IT services.
Last year businesses continued to invest in infrastructure upgrades, along with new software applications and mobile devices (including tablets), positive trends that are expected to continue in 2012. IDC noted enterprise spending on network equipment will also accelerate as many organizations invest in network upgrades to cope with the continuing increase in digital information, which should ensure another positive year for the storage market. By the end of 2012, the PC industry is also expected to return to positive growth.
