Analyst group IDC anticipates an IT spending slowdown in 2009
Industry analyst firm IDC recently issued a report warning the personal computer market will "slow down sharply" over the next quarter and into 2009.
The global economic crisis will lead to consumers spending less money during this holiday shopping season, with the United States, Japan and Western Europe suffering the most. On a domestic scale, Silicon Valley will be hardest hit, as the region has the highest concentration of high-tech jobs in the United States.
Prior to the economic chaos that came full circle in September, Goldman Sachs & Co. predicted IT job cuts in 2009, claiming both contractors and full-term employees would suffer because of the economy.
IDC originally predicted IT spending would grow 5.9 percent in 2009, but the latest report indicates just 2.6 percent growth.
Hardware spending, except for storage, will decline next year, while computer software and services should see solid growth over the next year, IDC said.
The entire briefing is available in IDC's Economic Crisis Response: Worldwide IT Spending 2008-2012 Forecast Update, which is available now.
"Although the revised forecast and the downside scenario both reflect a grim outlook for global economic growth over the next several years, IT spending actually fares well when compared to the previous downturn after the events of September 11, 2001," according to Stephen Minton, IDC Worldwide IT Markets and Strategies VP.
In addition, IT "is in a better position than ever to resist the downward pull of a slowing economy," which means spending on technology products will continue to grow next year -- but it won't be at the same pace analysts predicted six months ago.
Cisco, Dell, Nortel, and other companies have already announced IT spending will drop in the future, if it already hasn't.
Even if the next year or two will be tough for the IT industry, IDC and other analyst firms expect technology spending to recover at some point between 2010 and 2012. But the industry may lose more than $300 billion in revenue until a turnaround takes place in 2012 or beyond.
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