Strong growth in IT spending in the UK is expected over the next two years, according to the latest figures from market research firm IDC, allaying fears of deflated demand.
According to the latest figures, European spending on IT has bottomed out and there are now signs of recovery.
IDC's research predicted that the UK will grow by 6.7 per cent in 2002 and by nine per cent in 2003, compared to only four per cent last year.
"The main feedback we have is that the postponement of IT spending, which hit Europe towards the end of last year, was due to the downturn in the economy. As the economy recovers businesses will go back to these projects," said Stephen Minton, director of European IT markets centre at IDC.
The figures are based on supply and demand sources with vendor and end user information. The research claims to dispel the myth that overspending on ebusiness in the past will lead to a two-year slump.
"Some people claimed that ebusiness was over hyped but this hype has been over hyped. Ebusiness is as important now as it was 12 months ago," said Minton, adding that wireless and broadband will increase spending over the next two years.
"The big growth area is going to be mobility for sure," said Robin Newbury, a director at reseller CSN.
Software and services continue to be the most stable sectors and the former is likely to see the strongest growth in 2002, reaching 12 per cent. Hardware will recover at a slower rate with an overall growth of three per cent.
Networking and storage hardware and handhelds will see the most positive growth with the PC market expected to be the only sector to continue falling.
"The PC market is in a deeper slump because the installed base is so high and there is less need to upgrade," said Minton.
And Newbury added: "People have fairly good PCs now and are buying mobile computing devices such as laptops and handhelds. There is not a lot of technology now that cannot already be done, but things are getting smaller and quicker."
He said that resellers which offer more than just products will prosper.
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