Limited company contractors may be pleased to hear that IT spending is expected to increase by 3.7% this year.
Gartner, the IT analyst, has predicted that spending on information technology will increase to £2.45 trillion this year as companies invest in solutions to help them return to growth. This will follow on from last year’s recovery when companies world-wide invested £2.38 trillion in IT.
Last year Gartner had predicted that IT spending would rise by 4.6% this year, but a number of factors including the impact of the floods in Thailand and the Eurozone crisis have caused it to downgrade its forecast for 2012.
The four major technology sectors; IT services, enterprise software, computing hardware and telecommunications equipment and services are all expected to benefit from increased spending in the coming 12 months, according to Gartner. Revenue from telecom equipment is projected to rise by 6.9%, followed by enterprise software with growth of 6.4%.
Gartner’s research VP, Richard Gordon, explained that hard drive production would be down in the short to mid term because of the floods in Thailand. Thailand is a major hub for both finished hard drives and components and the supply of hard drives could reduce by around 25% over the next six to nine months. It will take time for manufacturing facilities destroyed by the floods to be rebuilt and supply could still be affected as we go into 2013.
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