Infotech Lead America: According to figures released by IDC Worldwide Black Book Query Tool, IT spending remained broadly strong throughout a difficult fiscal end to 2012.
Even though economic growth declined, worldwide IT spending recorded annual growth of 5.9 percent in 2012 in constant currency terms, compared to the 5.8 percent growth recorded in 2011.
Total IT spending on hardware, software and IT services touched $2 trillion, while ICT spending (including telecom services) increased by 4.8 percent to $3.6 trillion.
In U.S. dollar terms, worldwide IT spending grew by just 3.3 percent. In 2013, IT spending is expected to increase by 5.5 percent due to continuous investments by businesses and consumers in mobile devices, storage, networks and software applications.
The PC industry recorded a 2 percent decline in annual revenues. Servers, PC monitors and feature phones saw revenues decline as tablets and smartphones took over the market. Spending on smartphones in 2012 reached almost $300 billion exceeding that of PCs, while PC spending declined to $233 billion.
The U.S. economy is expected to stabilize in the second half of the year, driving IT spending growth of 5.5 percent. Tech spending in Europe is expected to increase by just 2 percent as the Eurozone and UK struggle to deal with the lingering debt crisis. Japan will record IT growth of 0 percent this year.
Weaker economic growth in Brazil, India, and China, is creating uncertainty for IT vendors. Economic projections for 2013 are generally positive and the government in China is likely to ensure an improvement in overall growth.