Gartner: IT Recession Changes Are Likely To Last

The severe recession of the past two years has made one thing assured: For many IT organizations, things will never be as they were before the rough seas hit.

Gartner and IDC both pointed to a significant realignment. At its Symposium/ITxpo, Gartner said it expects worldwide IT spending to decline 5.2 percent and enterprise IT spending 6.9 percent.

The good news is that 2010 spending will manufacture up some of those losses with IT spending of $3.3 trillion, a 3.3 percent increase from that year.

The numbers spelled out by Gartner aren’t pretty. The firm said hardware spending will decline that year by 16.5 percent (to $317 billion), with flat expenditures expected next year. Telecom is suffering a four percent decrease (to $1.9 trillion), with 3.2 percent growth expected in 2010. Software spending will decline 2.1 percent that year, with a rebound of 4.8 percent in 2010.

A Core Shift

A core, systemic shift

is occurring, even whether some of the dollar figures rebound. “This is not something that is happening in a 90-day window,” said Joe Pucciarelli, IDC’s program director for technology financing and executive strategies.

Pucciarelli, who wrote a reported entitled ‘New Normal’ — How the Changed Economy Is Shaping IT Practices, said IDC did in-depth interviews with IT decision-makers at the CIO Summit early last month in Scottsdale, AZ.

“There will be a new business framework for the foreseeable future,” he said. “There is going to be a lot of pressure to understand and explain as an IT pro what the value and the costs are of the key applications you are delivering.”

The question isn’t whether the world is changing, but how it will look after those changes are integrated into the way business is done. Pucciarelli said there will be four big impacts from the recession and parallel technical…

Original post by dhiram

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