Market spend to rebound by 2010

BANGALORE, INDIA: 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 per cent 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 per cent. The agriculture, mining and construction market will experience the steepest decline in IT spending this year, declining 9.2 per cent. 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 Brant in a press note. “Vendors should develop and/or expand financial models for project justification and sales training on selling to the financial buyer and business leader.”