The economy may be stuck in low gear, but telecom and IT spending will continue to be strong for at least the next three years, says research firm Gartner Inc. The firm expects 2008 spending to increase 8 percent to $3.4 trillion.
"The U.S.-led economic downturn shows no sign of causing a recession in IT spending," said Jim Tully, an analyst with Gartner. Tully also said information technology spending rates will slow down in the coming years, "but the fundamentals remain strong (as) emerging regions, replacement of obsolete systems and some technology shifts are driving growth."
Services and telecom products are expected to continue to dominate IT spending budgets, and together should account for $2.8 billion of 2008's IT spending and almost $3 billion in 2009.
For more:
- See the Dow Jones story at CNNMoney
Related articles:
ADC sees lighter spending by telcos. ADC report
Adtran says Tier 2 spending may decline. Adtran report