World economy started recovering from the beginning of the year 2010.

However, the
global economic downturn has continued to weigh on the ability and desire of businesses
and consumers to make IT purchases. While initial growth in IT spending in 2010 and
2011 may come as the result, directly or indirectly, of the various government stimulus
packages announced around the world in recent months, there will be a return to more
sustained growth in IT spending in 2012 and 2013 as the economic recovery unfolds.

The global economic downturn may be easing, but IT budgets are still being cut and
consumers will need more persuading before they feel confident enough to spend more.
Worldwide IT spending was USD3.22 trillion in 2009, a 5.2% decrease from 2008.
Worldwide IT spending is expected to return to growth in 2010 as revenue is projected to
reach USD3.3 bn, a 2.5% increase from 2009. It is estimated that worldwide IT spend
will reach USD3.4 bn in 2011, an increase of 2.9% from 2010.

Worldwide IT Spend in USD bn

USD USD USD USD USD
Total 3180 3372 3223 2.5% 3304 2.9% 3400
bn bn bn bn bn Worldwide End User Spending on
100%
IT Services (in USD Bn)
90% 747 809 777 816
80%
Worldwide End User Spending on
% age contribution

70%
60% Telecommunications (in USD Bn)
50% 1854 1958 1892 3400
1940
40% Worldwide Enterprise Spending (in
30% USD Bn)
20%
209 225 221 231
10% Worldwide End User Spending on
370 380 333 Estimation
317
0% Computing Hardware (in USD Bn)
Users, especially professional
2007 users, have
2008 increased
2009 average2011
2010 hardware lifetimes during the
economic slowdown and will continue to do the same in near future. The most prominent
segments to see longer life cycles are professional PC desktops, copiers and multifunction
products, and x86-based servers.
Worldwide software spending in 2009 was on pace to total USD221 bn—a 2.1 percent
decline from 2008 spending of USD225 bn. Software spending is expected to return to
the growth in 2010, with revenue reaching USD231 bn, a 4.5% increase from 2009. It is
expected that it will follow the same trend in 2011. Vendors offering software as a service
(SaaS), IT asset management, virtualization capabilities and a good open source strategy
will benefit.
Telecommunication market declined by USD 66 bn in 2009. The market is forecast to
grow by 2.5% in 2010, taking the total market to $1.94 trillion. New investments in
telecom operations and management systems (TOMS) will be primarily driven by
business goals of cost savings, revenue generation and improvements in customer
experience.
Worldwide IT service spending was USD 777 bn in 2009, a 3.5 percent decline from
2008. In 2010, a worldwide IT service spending is forecast to reach $816 billion, a 4.5
percent increase from 2009. Government intervention is a “wild card” in the U.S. and
Western Europe which is considered to be slightly positive for the IT companies.
All regions experienced a decline in IT spending in 2009, with Western and Eastern
Europe recording the biggest declines. Only Japan and Middle East and Africa showed
positive and flat growth, respectively.

Wordlwide IT spe nd by countries

74 77.7 71.3 74.7
100%
148 170.2 142.6 140.5 Canada
90% 192 205.7 205.7 217.1
222 250.7 236.4 257.1 Eastern Europe
80%
273 301.3 306.7 304.5
70% Middle East and Africa
Spend by countries

472 503.6 490.9 515.6

60% Latin America
50%
872 Japan
40% 906 811.9 836.1
Asia/Pacific
30%
20% Western Europe
929 957.2 932.1 958.3
10% United States
0%
The global economy is expected to begin a gradual recovery before the end of the year.
2007 2008 Ye ar 2009 2010
However, the timing and strength of the recovery will still vary across regions, with Asia
leading the way, the U.S. following and Europe lagging behind.
Utilities and the national and international government sectors will experience the
strongest growth rates in 2010, with IT spending growing 4.7% and 4% respectively in
2010.
 IT Spend by Verticals for the year 2009 and and Expe cted IT Spe nd by ve rticals for the year 2010
86,215 88,996
100%
62,607 64,148 Healthcare
81,196 83,315
90% Education
119,927 125,583

80% Wholesale Trade

142,420 146,239
70% 156,573 159,926 Utilities
176,747 179,664 Transportation
60%
235,086 244,410 Retail
50%
Insurance
379,855 390,488
40%
Local and Regional Government
30% National and International Government
378750 392,506
20% Banking and Securities

Communications M edia and Services

10% 415,480 426,085
M anufacturing and Natural Resources
Industry
0% sectors that will experience the greatest increases in IT spending this year
2009 Year 2010
include government, utilities, communications media/services and healthcare.
For IT organizations, the year ahead will not only be a time for rebuilding but also for
innovation. Spending will remain restrained, and IT executives will continue to be asked
to deliver more with less. But they are also receiving the go-ahead to take risks with
projects that promise long-term improvements in the ability of IT to support new business
initiatives.