Industry news

Growth in IT spend including ethernet networks 'will shrink to 2.6%'

A report predicts the rate of growth in total worldwide IT spending including ethernet networks will decrease next year but still remain positive.

Technology analysts IDC suggests it will expand 2.6 per cent, down from the original expected 4.2 per cent.

While certain areas, including Japan, western Europe and the US will experience almost one per cent growth, other areas - such as central and eastern Europe - will retain a healthy expansion rate.

Chief research officer at the company John Gantz claims the sector is in a position which could allow it to resist the downward pull of economic conditions.

"Technology is already deeply embedded in many mission-critical operations and remains critical to achieving further efficiency and productivity gain," he suggests.

Last month, a report from rival analyst Gartner predicted the decrease in spending on the telecommunications industry would be less pronounced than in the 2001 dot com bubble.

It expects a slowdown from 5.8 per cent to 2.3 per cent during the next year.