eWeek: In the first quarter of this year, market research firm Gartner predicted that global IT spending would grow 5.3 percent. Now, it has revised those figures, saying the European debt crises and the devaluation of Euro will cause IT spending to grown only 3.9 percent for the year.
"The European sovereign debt crisis is having an impact on the outlook for IT spending," explained Gartner analyst Richard Gordon. "The U.S. dollar has strengthened against the euro during the second quarter of 2010, and this trend will likely continue in the second half of 2010, which will put downward pressure on U.S. dollar-denominated IT spending growth."
He added, "Longer-term, public-sector spending will be curtailed in Europe as governments struggle to bring budget deficits under control during the next five years and to reduce debt during the next 10 years. Private-sector economic activity will also likely be hindered because of the direct impact of austerity measures on key government suppliers and the indirect impact caused by the 'ripple effect.'