Stamford, Conn, 18 May 2010

Worldwide enterprise IT spending across all industry markets is forecast to surpass $2.4 trillion in 2010, a 4.1% increase from 2009 spending, according to Gartner, Inc. Industries are returning to growth after a difficult year in 2009 when IT spending by vertical market totaled $2.3 trillion, a 5.6% decline from 2008.

"2010 will see IT spending in all major industries returning to growth, although that growth will vary by individual sector," said Kenneth Brant, research director at Gartner. "National and international government will show the strongest growth in 2010, as IT spending is forecast to grow 6.2 per cent worldwide. Among the two largest industry segments, IT spending in the banking and securities market will rebound to $396.9 billion in 2010, a 4.6 per cent increase from 2009; whereas IT spending will recover more slowly in manufacturing and natural resources during 2010, growing to $428.9 billion, a 3.1 per cent increase from 2009."

Banking and securities, and communications, media and services will experience the greatest growth through 2014, growing at 2009-2014 compound annual growth rates (CAGRs) of 5.2 per cent and 4.6 per cent, respectively. Manufacturing and natural resources, and wholesale trade will experience the weakest growth through 2014, growing at 2009-2014 CAGRs of 3.0 per cent and 3.1 per cent, respectively.

Gartner recommends that technology and service providers execute business and marketing plans for 2010 based on a 4.1 per cent annual growth rate, but prepare contingencies to mitigate the downside risk of a slow-growth scenario or a "double dip" recession, based on uncertainties in the economic environment.

"Vendors should convert to a growth market strategy and allocate business development resources to maximise long-term industry growth opportunities," said Mr Brant. "However, we recommend that they continue to promote the value of solutions that deliver 'cost optimisation' in 2010 and 2011, which we believe will be a persistent value for IT buyers even as markets return to growth."

Ends --

Additional information is available in the report "Forecast Alert: Enterprise IT Spending by Vertical Industry Market, Worldwide, 2008-2014, 1Q10 Update" which is available on Gartner's website:

www.gartner.com/resId=1366213

The detailed statistics are available at:

www.gartner.com/resId=1362247

About Gartner

Gartner, Inc. ( NYSE: IT) is the world’s leading information technology research and advisory company. Gartner deliver the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is the indispensable partner to approximately 60,000 clients in 10,000 distinct organizations. Through the resources of Gartner Research, Gartner Executive Programs, Gartner Consulting and Gartner Events, Gartner works with every client to research, analyze and interpret the business of IT within the context of their individual role. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, U.S.A., and has approximately 4,300 associates, including approximately 1,200 research analysts and consultants serving clients in 80 countries.  For more information, visit www.gartner.com.