IT spending returns to pre-recession levels

The global IT industry had a bumper 2010 as spending returned to levels not seen since 2007, according to new figures from IDC.

The analyst firm's latest Worldwide Black Book survey showed that global spending on IT systems rose eight per cent to over $1.5tn (£933bn) last year, and reached nearly $3tn (£1.8tn) if communications spending is factored in.

"Like the global economy, the global IT industry performed better than expected in 2010," said Stephen Minton, vice president of IDC's IT Markets and Strategies Group.

"With business profits and stock markets back into a cycle of growth, many organisations took the opportunity to make up for lost time by upgrading mission-critical systems and infrastructure over the course of the year.

"While downside macroeconomic risks are still present, we entered 2011 on the back of a resounding rebound for the technology industry."

Hardware spending led the way as companies replaced outdated systems and servers that were kept operating owing to budget restraints.

Overall hardware sales rose 16 per cent to more than $661bn (£411bn), the fastest rate since 1996, IDC reported. Storage spending rose 14 per cent, servers nine per cent and PCs 11 per cent.

Spending in the Asia and Pacific markets (excluding Japan) grew 13 per cent and are expected to show similar growth in 2011. By contrast, US spending rose six per cent, with five per cent growth predicted next year based on current economic forecasts.

However, Anna Toncheva, programme manager and economist in IDC's IT Markets and Strategies Group, warned that the global economy "could still be a wild card ".

"The sovereign debt crisis in Europe may raise its head again, and we still lack sufficient visibility into many variables to be sure that a double-dip recession will not occur," she said.

"However, the consensus is currently that such a downturn is much less likely now than six months ago, and this continued economic stability will provide the foundation for another year of strong growth in the IT industry."