The recession might be technically over but don’t expect another tech spending boom any time soon. IT spend by UK businesses will recover this year – but at a slower rate than the rest of the world.
The report by analyst group Gartner anticipates that IT budgets across the UK will rise by 3.6 per cent during 2010. This compares to an average global increase of 4.1 per cent over the same period.
But this compares to a 14.2 per cent fall in IT spending in the UK last year (to $169.9bn) compared to 5.6 per cent decline worldwide.
According to Gartner research director Kenneth Brant, this difference highlights how the recession had a “greater impact” on IT in the UK and more advanced economies, than it did in developing economies.
Back in January, few UK CIOs were expecting an increase in their IT budgets, according to silicon.com’s exclusive CIO Jury.
Long term, the UK’s spend is expected to grow at a rate of 3.1 per cent between 2009 and 2014, but that’s still below the four per cent expected worldwide.
Brant said: “Around the world, economic recovery and industry growth is taking place at multiple speeds. In the cost-conscious business environment that persists from market shocks of 2009, IT spending in 2010 is being carefully managed as an enterprise cost”.
Worldwide, government IT spending is expected to see the biggest increase of 6.2 per cent. But with plans to reduce the budget deficit through savings in IT investment, the UK government looks unlikely to be one of the leading investors.