IDC: Software, Services Will Lead Us Out of IT Slump

Research firm IDC released a report yesterdaysuggesting the IT market would slowly recover in 2002, driven by sales ofsoftware and services.

According to IDC, the IT industry ain’t gonna get muchbetter this year, seeing only 1% growth for the year. By comparison, the ITindustry grew 12% last year. IDC says the terrorist attacks on September 11exacerbated the woes of an already struggling industry.

IDC says hardware spending was the chief culprit in theslowdown. Hardware sales are down 9% worldwide. The slowdown started in theUnited States, but quickly spread to other regions. Sales are down 4% inWestern Europe and a jaw-dropping 16% in Japan.

Despite the gloomy year, the near future seems a littlerosier. According to IDC’s research, sales should gradually pick up next year,growing by 5.5% by year-end.

Software and services, IDC says, will lead the industryout of the slump. It believes software spending will return to traditional levelssometime next year, and services spending will remain a bright spot in theindustry. In spite of the slowdown, IT services spending has grown by 9% thisyear.  ChrisMcConnell