APAC IT Spending Set to Make Rebound in 2010

by CXOtoday Staff    Nov 18, 2009

Even as worldwide IT spending is set to decline 5.2 percent, Gartner analysts feel the IT industry is exiting its worst year ever. According to these analysts the IT industry will return to growth in 2010. The IT spending has been predicted to total U.S. $3.3 trillion — an increase of 3.3 percent in comparison to 2009.

In the Asia Pacific, IT spending is expected to amount to U.S. $515.6 billion in 2010. This is an increase of 5 percent. A Gartner analyst made a strong statement that "Silicon Valley will not be in the driver’s seat any more" because by 2012, the increased IT spending and culturally different approach to IT (in Asia) will influence product features, service structures and the overall IT industry.

Growth varies considerably by country, vertical market and IT sector. While software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.

In addition to this, the following topics will take on a higher priority in 2010,

  • Business intelligence (BI)
  • Virtualisation
  • Social media

But Gartner analysts advise IT leaders to remain cautious because the market will not recover to 2008 revenue levels before 2012. The year 2010 is being viewed as the time where enterprises will balance their focus on cost, risk, and growth.