Follow Us

We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message

European IT spending growth 'comes to a halt' - Forrester

Euro crisis has IT shops across Europe tightening their belts, according to the analyst firm

Article comments

IT spending in Europe will virtually grind to a halt this year and next due to economic uncertainty over the euro currency, according to a Forrester Research report released Thursday.

"The most likely result is either near-zero growth or economic recession in 2012, depending on the country," Forrester analyst and lead report author Andrew Bartels wrote. "The worse case is a possible collapse of the euro and a resulting depression."

It is likely that European officials will "do just enough" policy-wise to avoid that worst-case scenario, Bartels added. Under those circumstances, IT spending growth will still only amount to 0.3 percent this year.

But if the euro collapses, tech spending in Europe will fall dramatically, Bartels said. "CIOs need to match IT spending plans with this bleak outlook for 2012 while preparing contingency plans for a euro collapse and hoping for somewhat better prospects in 2013," he added.

There are much different technology adoption rates among European countries, with nations such as Denmark and Sweden being very advanced, while Greece, Italy and other southern countries are less so, according to the report.

That has allowed Forrester to forecast mixed European IT spending growth rates in past reports.

But the economic crisis gripping Europe now is so broad-based that in 2012 and 2013, IT spending behaviors will reflect the region as "one single market," Bartels wrote.

Only IT outsourcing will show "meaningful," albeit "still mediocre" European spending growth in 2012, according to Forrester. Measured in euros, IT outsourcing and hardware maintenance spending will rise 3.3 percent and IT consulting and integration services will jump 2.8 percent, it said.

Spending on communications equipment, meanwhile, will fall 1.7 percent, according to the report.

However, when measured in US dollars, "the European market picture is even darker," with every category seeing a downturn in Europe this year, according to Forrester.

Computer equipment spending in dollars will fall 6.8 percent, communications equipment by 8.4 percent, and software by 5.2 percent, the report states.



Share:

More from Techworld

More relevant IT news

Comments



Send to a friend

Email this article to a friend or colleague:

PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.

Techworld White Papers

Choose – and Choose Wisely – the Right MSP for Your SMB

End users need a technology partner that provides transparency, enables productivity, delivers...

Download Whitepaper

10 Effective Habits of Indispensable IT Departments

It’s no secret that responsibilities are growing while budgets continue to shrink. Download this...

Download Whitepaper

Gartner Magic Quadrant for Enterprise Information Archiving

Enterprise information archiving is contributing to organisational needs for e-discovery and...

Download Whitepaper

Advancing the state of virtualised backups

Dell Software’s vRanger is a veteran of the virtualisation specific backup market. It was the...

Download Whitepaper

Techworld UK - Technology - Business

Innovation, productivity, agility and profit

Watch this on demand webinar which explores IT innovation, managed print services and business agility.

Techworld Mobile Site

Access Techworld's content on the move

Get the latest news, product reviews and downloads on your mobile device with Techworld's mobile site.

Find out more...

From Wow to How : Making mobile and cloud work for you

On demand Biztech Briefing - Learn how to effectively deliver mobile work styles and cloud services together.

Watch now...

Site Map

* *