Gartner Cuts Global Technology Spending Forecast on Euro Woes

Gartner Inc. lowered its growth forecast for worldwide spending on information technology this year to 3.9 percent, from a prediction of 5.3 percent, citing problems in euro area economies.

The falling euro and austerity measures to counter the sovereign debt crisis will reduce dollar spending, the research firm said in an e-mailed press release. Hardware will lead spending growth with a 9.1 percent increase, while software, services and telecommunications will advance at lower rates, Gartner said.

“Chief information officers see only marginal increases in budgets and are constrained to essential spending, with discretionary spending still on hold,” Gartner analyst Richard Gordon said in the release.

To contact the reporter on this story: Diana ben-Aaron in Helsinki at dbenaaron1@bloomberg.net

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