IT services spend to double
By Jonathan Moules in New York
Published: May 2 2001 16:31GMT | Last Updated: May 3 2001 07:32GMT
The US economic slowdown will spur renewed growth in information technology services spending, according to Dataquest, a unit of research group Gartner.
The IT services market was expected to grow 12.1 per cent this year, from $665,870bn in 2000, Dataquest said. Spending was expected to reach $1,400bn in 2005, more than double the 2000 figure.
"In periods of economic contraction, the IT services market has benefited from the need for orgnisations to increase productivity and re-engineer their processes," said Michael Palma, principal analyst for Dataquest's IT services worldwide group.
The Asia-Pacific region is forecast to drive the IT spending growth, more than tripling to $124.8bn in 2005, largely due to government-funded projects.
North America would account for 52 per cent of spending, or $712bn in four years' time, Dataquest said. Western Europe's market continues to be subject to a constrained labour supply, but will reach $326bn by 2005. |
