(By Balachander) International Data Corp. (IDC) forecasts worldwide IT spending to grow 6 percent in 2012, spurred by continuing demand for tablets, smartphones, storage capacity, and network performance improvements.
The provider of market intelligence services also expects worldwide IT spending to increase 6 percent to $2.1 trillion in 2013.
IDC said "software spending has been robust, even in regions where economic trends have been weakest, as businesses turn to software tools and applications as a means of implementing cost-reduction strategies."
Strong performances in the software, storage, enterprise network, and mobile device markets has so far offset weaker trends in PCs, servers, peripherals, and telecom provider equipment, IDC said.
The strength of software spending seems to prove that many enterprises have unlocked significant productivity and efficiency improvements, said Stephen Minton, vice president in IDC's Global Technology and Industry Research Organisation. "If the economy avoids downside scenarios in the second half of the year, a PC upgrade cycle in 2013 should help to maintain this momentum."
IDC forecasts U.S. IT spending to grow 5.9 percent this year, weaker than 8.5 percent growth last year.
Excluding mobile devices from the forecast, Europe is on track for just 1 percent growth in constant currency, IDC said. The recovery in Japan has lost some momentum, with IT growth in constant currency now on course for a rise of just 2 percent this year before flat lining again in 2013, IDC said.
In China, IDC expects IT spending to rise 14 percent in 2012 in constant currency, but down from 25 percent growth last year.
IDC forecasts strong growth in India (14 percent), Brazil (14 percent), Russia (11 percent), and South Africa (8 percent).