IDC Anticipates Growth in Q4
Rising out of the ashes
Analyst firm IDC believes IT spending will grow during the balance of 2002, heating up in the fourth quarter. It also believes spending will grow in 2003.
Worldwide, IDC’s research indicates IT spending will hit $981 billion, a 3.7% improvement over last year. It believes software will drive most of the growth, as hardware spending will fall 4% this year.
The fourth quarter is often the biggest quarter for IT spending, but the events of September 11 introduced fear and uncertainty into the business world, leading many managers to curtail spending. Not surprisingly, IDC expects year-over-year growth in the fourth quarter to be significant.
According to IDC, managers often spend more liberally in the fourth quarter, knowing their budgets will be replenished the following quarter. However, replacing products that have reached end-of-life in the last eighteen months will be the primary driver of spending in the fourth quarter of this year.
IDC expects modest growth in 2003, suggesting IT spending will hit the $1 trillion mark for the first time. Growth should hit 9% overall, while hardware growth will return to the plus side at 5%.
Growth stateside should also be in positive territory, IDC says. It anticipates 3% growth this year over 2001 and 9% growth in 2003. The total IT spending in the US should hit $436 billion this year.
Chris McConnell is Product and Technology Editor for Enterprise Systems.