Across the Spectrum

• Global ICT markets defy downturn

  13/1/2009

  
  

  WORLDWIDE demand for IT goods and services would continue to expand in 2009, despite the toxic forecasts for the global economy, Europe's top industry research group says.

  The European Information Technology Observatory (EITO) has forecast the global market computer hardware, software and services to grow by 2.7 per cent to E983 billion (A$2.01 trillion) in 2009.

  EITO is the research arm of BITKOM, the Germany-based peak IT industry representative body. EITO is a strategic partner of CeBIT in Hannover, the largest annual exhibition in the world of any industry.

  The EITO forecasts paint a picture of winners and losers - with some geographies faring better than others, and some industry sectors that will feel the impact of the GFC more than others.

  It says the Western European market would grow just 2 per cent next year, while the US market will be hardest hit, growing just 0.8 per cent to E347 billion.

  The hardware market will find the economic outlook hardest to deal with as buyers postpone equipment upgrades as they wait for the market to pick.

  But as users try to leverage their existing systems, the software and IT services markets will do better. The burgeoning market for internet-based software is expected to drive growth.

  "IT expenditure of businesses will continue to grow even in an economic recession," EITO chairman Bruno Lamborghini said. "Information technology is of strategic importance for companies in a crisis situation because it makes operations more efficient and more economic."

  "So far, the IT industry has navigated the economic storms with relative stability," Mr Lamborghini said. This showed the increasing importance of information technology for business.

  "Modern IT systems lead to lower costs, promote innovations in products and processes, and are therefore an important instrument in managing the crisis," he said.