Global telecom equipment spending to grow 6.9 percent in 2012

Worldwide telecom equipment spending is forecast to total
$475 billion, with revenue increasing 6.9 percent in 2012. On the other hand,
telecom services spending are projected at $1,740 billion and will see a growth
of 2.3 percent in 2012, according to the latest outlook by Gartner.

The outlook also says that worldwide IT spending is
forecast to total $3.8 trillion in 2012, a 3.7 percent increase from 2011. In
2011, worldwide IT spending totaled $3.7 trillion, up 6.9 percent from 2010

Gartner has revised its outlook for 2012 global IT
spending from its previous forecast of 4.6 percent growth.

All four major technology sectors computing hardware,
enterprise software, IT services and telecommunications equipment and services
are expected to experience slower spending growth in 2012 than previously

Faltering global economic growth, the eurozone crisis and
the impact of Thailand’s floods on hard-disk drive (HDD) production have all
taken their toll on the outlook for IT spending, according to Gartner.

The Thailand floods are having serious implications for
businesses worldwide, particularly with computer and storage purchases. It has
been a major hub for hard-drive manufacturing, both for finished goods and

Gartner estimates that the supply of hard drives will be
reduced by as much as 25 percent (and possibly more) during the next six to
nine months.  

Although large PC OEMs will see fewer problems than
others in the industry, no company will be wholly immune to the effects on the
HDD supply chain.

Gartner has reduced its shipment forecast for PCs, which
has impacted the short-term outlook for the hardware sector. The impact of HDD
supply constraints on HDD and PC shipments in the first half of the year
compound the cautious environment for hardware spending in general.  

With the euro zone crisis causing uncertainty for both
businesses and consumers in Western Europe we have adjusted our forecast, and
we expect IT spending in Western Europe to decline 0.7 percent in 2012,”
said Richard Gordon, research vice president at Gartner. 

By Team
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