The euro-zone crisis and the impact of Thailand's floods on hard disk drive (HDD) production have taken a toll on the outlook for IT spending.
This is according to analyst firm Gartner after revising downward its outlook for 2012 global IT spending, from its previous forecast of 4.6% growth.
The firm notes that worldwide IT spending is forecast to total $3.8 trillion in 2012, a 3.7% increase from 2011, according to its latest outlook.
In 2011, worldwide IT spending totalled $3.7 trillion, up 6.9% from 2010 levels. All four major technology sectors - computing hardware, enterprise software, IT services, and telecommunications equipment and services - are expected to experience slower spending growth in 2012 than previously forecast.
The Thailand floods, which left one-third of the country under water, are having serious implications for businesses worldwide, particularly with computer and storage purchases, it says.
“Thailand has been a major hub for hard drive manufacturing, both for finished goods and components,” says Richard Gordon, research VP at Gartner.
“We estimate the supply of hard drives will be reduced by as much as 25% (and possibly more) during the next six to nine months. Rebuilding the destroyed manufacturing facilities will also take time, and the effects of this will continue to ripple throughout 2012, and very likely into 2013.”
Although large PC original equipment manufacturers will see fewer problems than others in the industry, no company will be wholly immune to the effects on the HDD supply chain, the firm adds.
Gartner has also reduced its shipment forecast for PCs, which has impacted the short-term outlook for the hardware sector. The impact of HDD supply constraints on HDD and PC shipments in the first half of the year compounds the cautious environment for hardware spending in general.
Telecoms equipment spending is projected to show the strongest growth, with revenue increasing 6.9% in 2012, followed by the enterprise software market, which will grow 6.4%.
“With the euro-zone crisis causing uncertainty for both businesses and consumers in Western Europe, we have adjusted our forecast, and we expect IT spending in Western Europe to decline 0.7% in 2012,” Gordon concludes.
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