Global spending sluggish, but Aussies optimistic

James Riley
Tuesday, 09 March 2010 18:01

IT Industry - Market

The Australian market will be one of the happier hunting grounds for vendors seeking sales growth in 2010, with local IT spending budgets increases significantly higher than the global average, according to research group Ovum.

But despite the comparative strength of the Australian economy, IT expenditure increases locally are still cautious and they will not get close to the level of pre- global financial crisis budgets until at least 2011.

Globally, Ovum reports that IT expenditure is trending upwards, although most increases are slight, of not more than 5 per cent over 2009.

The vast majority of enterprises will continue to experience flat (0 per cent) budget growth in 2010.

Ovum senior analyst Rhonda Ascierto said that while the survey data was promising, it does not translate into an IT spending recovery.

"Realistically, the numbers more likely reflect the effect of previously deep budget cuts, during 2008 and the first half of 2009, which left many IT departments operating at 'bare-bones' capacity," Ascierto said.

In Australia, Ovum principal analyst for IT services Jens Butler said spending growth trended toward the upper edge of the global spread.

"Globally the spread is anywhere between minus five per cent and plus five percent. But within the Australian experience we see the majority definitely increasing their budgets by anything one per cent to five percent," Butler said.