07/11/2011
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Business expenditure in ICT to grow a poor 2.3 percent in EMEA next year
According to Gartner, the economic uncertainty and Eurozone crisis will continue to affect technological investment foreseen for 2012 in the EMEA, especially in Western Europe, which monopolizes 80% of the business expenditure in ICT in the region.
With only two scarce months to finish the year, Gartner estimates that business expenditure in ICT in EMEA will reach 604 billion euros in 2011, 1.4% less compared to last year, whereas for the coming year it is foreseen that this will increase by 2.3 percent although Western Europe, will carry on with the main bulk of technological investment in the region.
For Peter Sondergaard, Senior Vice President and Director of Investigation at Gartner, “the second recession is yet to arrive and CIO’s will have to decide what path to take. The continuing economic uncertainty on a worldwide basis and the eurozone crisis will have an impact on their ICT budgets for 2012, and their companies face difficult budgetary issues. Their options will depend on the geographical areas in which they operate, their industry and their organizational strength when the economic storm arrives”.
Forecasts of growth in ICT business expenditure in EMEA have been seen to be affected by perspectives of a heavy fall in economic growth in the most mature economies of Western Europe. In these countries, austerity measures to combat the sovereign debt crisis have led to cuts in governmental expenditure on ICT and have hindered economic growth, which have led to a reduced demand for ICT products and services by companies.
Western Europe, which represents 80% of ICT business expenditure in EMEA, will register a 1.8% drop in investment in 2011 and will grow only 1.5% in 2012. Government expenditure in ICT, including education, represents the largest part of business expenditure in ICT in Western Europe in 2011, at 20% of the total amount. Gartner foresee that this sector will go down by 4.8% in 2011 and 1.7% in 2012, and not to recover previously recorded levels in 2010 until the year 2015.
For Peter Sondergaard, Senior Vice President and Director of Investigation at Gartner, “the second recession is yet to arrive and CIO’s will have to decide what path to take. The continuing economic uncertainty on a worldwide basis and the eurozone crisis will have an impact on their ICT budgets for 2012, and their companies face difficult budgetary issues. Their options will depend on the geographical areas in which they operate, their industry and their organizational strength when the economic storm arrives”.
Forecasts of growth in ICT business expenditure in EMEA have been seen to be affected by perspectives of a heavy fall in economic growth in the most mature economies of Western Europe. In these countries, austerity measures to combat the sovereign debt crisis have led to cuts in governmental expenditure on ICT and have hindered economic growth, which have led to a reduced demand for ICT products and services by companies.
Western Europe, which represents 80% of ICT business expenditure in EMEA, will register a 1.8% drop in investment in 2011 and will grow only 1.5% in 2012. Government expenditure in ICT, including education, represents the largest part of business expenditure in ICT in Western Europe in 2011, at 20% of the total amount. Gartner foresee that this sector will go down by 4.8% in 2011 and 1.7% in 2012, and not to recover previously recorded levels in 2010 until the year 2015.
Source: IDG, Monday 7th November
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