Report: Tech spending to grow slowly through 2014

AP News
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Posted: Oct 18, 2010 1:36 PM
Report: Tech spending to grow slowly through 2014

Growth in worldwide corporate spending on computers, servers and other information technology will be "timid and at times lackluster" over the next five years, according to analysts at research firm Gartner Inc.

Businesses are on track to spend $2.4 trillion on technology this year, a 2.4 percent increase, and Gartner said Monday it expects corporate information technology spending worldwide to increase 3.1 percent in 2011 to $2.5 trillion.

By 2014, the total amount companies spend on technology is expected to total $2.8 trillion, Gartner said.

"Several key vertical industries, such as manufacturing and financial services, will not see IT budgets recover to pre-2008 levels before 2012 or 2013," said Peter Sondergaard, Gartner's global head of research, in a statement.

Technology spending will grow faster in developing countries than in developed countries, Sondergaard said.

Gartner, a technology research group, is based in Stamford, Conn. The forecast was delivered at a conference organized by the research group in Orlando, Fla.