Companies' IT budgets expected to grow 6% this year

- Tuesday, October 25, 2011

Companies' IT budgets expected to grow 6% this year

Overall IT budgets at Brazilian companies are expected to expand some 6% this year, while remaining mostly stagnant in the rest of Latin America, consultancy Gartner chairman Donald Feinberg told journalists during a press conference.

According to Feinberg, overall expected IT budgets in some major countries such as Mexico will even be negative this year.

"That is mainly because Mexico's economy is too tied with the US, which is currently undergoing a decrease in IT investments. Plus, the Mexican IT market is not as dynamic as Brazil's," Feinberg said on the sidelines of Gartner ITxpo conference in São Paulo.

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"And when we think of Latin America in terms of technology, in terms of IT, we tend to think in particular of these two countries."

Regarding the BRIC group of emerging economies - Brazil, Russia, India and China - Brazil ranks third in terms of IT growth, after China and India.

The estimates are based on a survey carried out by Gartner with CIOs at end-2010 regarding IT budget growth outlooks. "Globally, the overall rate is likely to move between 0 and 1%," Feinberg noted.

According to Gartner senior VP Peter Sondergaard, the most crucial IT markets are cooling down and are expected to have more modest expansion rates this year, bringing down global growth in general.

"We shall see a decrease in the growth rate for IT in the US, Western Europe and Japan. The problem is that those areas are nowadays the main IT forces concerning investments, and that will have an impact on the segment worldwide."

Feinberg noted that a new survey on the outlook for next year's IT budgets is being prepared by Gartner and will be released shortly.