Gartner: EMEA IT Spending Will Rise in 2011

IT-related spending in Europe, the Middle East and Africa will return to a growth mode in 2011, rising 1.3 percent to US$795.2 billion, analyst firm Gartner said Monday.

But EMEA will see IT spending fall 2.1 percent this year to $784.8 billion, Gartner said. Western Europe will experience the worst drop, falling 3.3 percent this year, according to the firm. Growth rates in Western Europe are also set to trail the pack through 2014.

Overall, the forecast shows EMEA lags the rest of the world in recovering from the global recession. The European sovereign debt predicament is playing a role, dragging down government IT spending. It will fall 2.8 percent in EMEA this year to $139.6 billion, Gartner said.

The hardware sector will be the only one to see revenue rise this year in EMEA, growing 4.6 percent to $79.4 billion. The rise is due to weak sales in 2009, as well as a return by companies to a normal computer replacement cycle.

In contrast, services spending will drop 5.6 percent to $234 billion in 2010.

All verticals save for utilities saw a decline in IT expenditures this year. Utilities will spend $46.2 billion, a 1.9 percent jump, thanks to regulatory changes that "are requiring the implementation of new processes, enabling infrastructure and rich analysis of energy information," Gartner said.

Gartner's report comes a few weeks after Forrester slightly downgraded its 2010 US IT spending forecast, citing weaker-than-expected economic data.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com

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