Global IT spend sees growth

IT spending worldwide is avoiding the downward economic trend, according to an analyst firm.

Gartner believes that spending will reach £1.8 trillion this year, an increase of eight per cent from 2007.

However, it was not all good news, as the company's report suggested that much of this growth was actually down to the struggling US dollar - spending expressed in 'constant currency' was actually at 4.5 per cent, and was mainly driven by emerging markets.

"The US-led economic downturn shows no sign of causing a recession in IT spending," said Gartner vice president and distinguished analyst, Jim Tully.

"In subsequent years we will see reduced growth, but the fundamentals remain strong."

"Emerging regions, replacement of obsolete systems and some technology shifts are driving growth."

Software was predicted to see a ten per cent spending increase in 2008, with this causing a knock-on growth in IT services (9.4 per cent), as companies employ people to implement the new programs.

PCs will continue to be the main growth area in hardware, constituting around 60 per cent of the market.