Gartner Says Overall IT Spending Has Bottomed Out; Recovery Seen in 2004
Analysts Discuss the Future of IT at Gartner Tech Investor Summit in New York City
NEW YORK, N.Y. November 11, 2003 — Overall IT spending has bottomed out, and 2004 and 2005 will see a minimum of strong single-digit growth over 2003 levels, according to Gartner, Inc. Although the aggregate number will rise, Gartner states that growth rates will vary widely by technology sector.
Gartner analysts presented these findings during the Gartner Tech Investor Summit, which is taking place here, November 10-12.
"We are now seeing a true recovery in the making," said Al Lill, group vice president for Gartner. "There is a key combination of technology advances, architectural changes, market forces and best practices in place to lead a good recovery for IT in the near future and culminating in very strong growth in the longer term."
Gartner analysts predict that the recovery will be coupled with a tremendous skills shift within the IT workforce, impacting hundreds of thousands, if not millions, of workers. Areas in which skills will be most highly valued include broadband, wireless, Linux, content management, real-time analytics, data mining, security, middleware, certification skills, business intelligence and knowledge management.
Gartner analysts also stated that a massive vendor consolidation cycle will accelerate through 2005, by which time more than 50 percent of current technology suppliers will be eliminated from the competitive landscape. An important ramification of this will be the ability of vendors to regain pricing power in several technology sectors.
"Real productivity gains will be achieved through the replacement or greatly diminished role of entire industries," Lill said. "For example, the combination of secure broadband wireless, very low-power consumption mobile electronics and new display technologies will have stunning consequences for the publishing, media and advertising industries, to name a few."
Gartner Tech Investor Summit is taking place at the Grand Hyatt at Grand Central in New York City. The summit is designed to meet the needs of investors ready to move forward with confidence and clarity, as well as investment banks and other major organizations in the investment world looking to re-engage with their most important customers.
The summit format and agenda is driven by independent research and strictly regulated company presentations from more than 70 major and emerging technology companies. A keynote address was delivered Tuesday by Leon Panetta, former White House Chief of Staff and current Co-Chair of the NYSE Corporate Accountability and Listing Standards Committee.
Gartner Tech Investor Summit is an invitation-only event designed for North America's leading institutional investors. For more information, go to www.techinvestorsummit.com or call Ann Marie Dutra at 603-471-4229 or e-mail annmarie.dutra@gartner.com.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
