This year, 2012, is one which the IT sector will watch with some trepidation. The biggest worry is whether clients would open their purse strings and spend the kind of dollars on which Indian IT has built its kingdom.
Gartner has thrown in a note of optimism here, which should bring about a great deal of joy to anyone associated with the sector.
According to its latest outlook, worldwide IT spending is forecast to total $3.8 trillion in 2012. This represents a healthy 3.7% increase from 2011. Last year global IT spending totaled $3.7 trillion, up 6.9% from 2010.
The firm, widely respected globally for its IT forecasts, has revised downward its outlook for 2012 global IT spending from its previous forecast of 4.6% growth. Though it is a dip, a 3.7% growth in these times, is certainly not bad. All four major technology sectors computing hardware, enterprise software, IT services and telecommunications equipment and services are expected to experience slower spending growth in 2012 than previously forecast.
CEOs of Indian IT firms too are fuelling the hope. Infosys CEO SD Shibulal has clearly articulated that the year will turn out to be just fine for Indian IT. Faltering global economic growth, the eurozone crisis and the impact of Thailand?s floods on hard-disk drive (HDD) production have all taken their toll on the outlook for IT spending, according to Richard Gordon, research vice president at Gartner.
The Thailand floods, that left one-third of the country under water, are having serious implications for businesses worldwide, particularly with computer and storage purchases. But one is not sure how badly Indian has been affected by it, though the impact is said to be marginal.
Although large PC OEMs will see fewer problems than others in the industry, no company will be wholly immune to the effects on the HDD supply chain. Gartner has reduced its shipment forecast for PCs, which has impacted the short-term outlook for the hardware sector. The impact of HDD supply constraints on HDD and PC shipments in the first half of the year compound the cautious environment for hardware spending in general.
Telecom equipment spending is projected to show the strongest growth, with revenue increasing 6.9% in 2012, followed by the enterprise software market, which will grow 6.4%. With the eurozone crisis causing uncertainty for both businesses and consumers in Western Europe Gartner has adjusted its forecast, and it expects IT spending in Western Europe to decline 0.7% in 2012.
There is a dip in fortunes; but nothing to be alarmed about. Here?s wishing everyone in the sector a wonderful 2012.