Gartner vs NASSCOM: A tale of two predictions
Gartner says that world IT spending (IT market size) will grow by 3.3% to $3.3 trillion in 2010. The market size given by Gartner is twice the market size given in the NASSCOM Strategic Report 2009. The report says that world IT market size is only $1.6 trillion. Gartner is an international IT consultant. NASSCOM represents the Indian association of IT companies. With real time data availability, why do these two organisations differ on this crucial statistic?  
 
Earlier, Gartner had said that IT spending could drop 6.9% but now it is likely to rebound in 2010. It also cautioned IT leaders not to be overly optimistic. It confirmed that the IT industry may return to growth in 2010 but it may not recoup the 2008 market size before 2012.
 
The hardware market could see decline of 16.5% to $317 billion in 2009 which will be recouped in 2011. Worldwide telecom spending worth $1.9 trillion could see 4% decline in 2009 and is likely to grow by 3.2% in 2010. IT services spending of $781 billion in 2009 could grow by 4.5% in 2010.
 
Server, PC and printer purchases have slowed down and it is expected that 1 million servers have had their replacement delayed by a year in 2009 and another 2 million servers could be delayed in the next year comprising 10% of the total installed server base.
 
NASSCOM’s break-up of $ 1.6 trillion comprised IT services ($557 billion), BPO ($115 billion), packaged software ($295 billion) and hardware ($594 billion).
Dhruv Rathi [email protected]   
 
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