Vertical industry IT spending will drop by 6.8% this year, reaching $2.28 trillion, says Gartner.
However, the analytical company predicts the market will return to growth next year, when it will grow at 2.3%, to reach $2.34 trillion. Total expected IT spend in SA for 2009 is predicted to be between R85 billion and R89 billion.
However, Kenneth Brant, research director at Gartner, says growth varies from sector to sector. “Our expectations for when the market will return to positive growth in IT spending - and for how strong that growth will be - vary significantly by industry sector, with the majority of industries expected to enter a period of sustained, positive growth in 2011.
“The three largest industry segments in 2008 - financial services, manufacturing and government - will remain the largest industry markets worldwide through 2013,” he adds.
Public sector spending is expected to show the slowest decline in IT spending as revenue decreases 3.6%. However, the hard-hit financial services sector will see spending down 8.3% in 2009.
Agriculture, mining and construction markets will experience the steepest decline in IT spending this year, dropping 9.2%.
“This deep and prolonged recession has the potential to create a new market environment with stronger spheres of financial and business influence in many industries' IT buying centres,” says Brant.
He adds that vendors should develop or expand financial models for project justification and sales training on selling to the financial buyer and business leader.
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