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its annual global survey of CIOs. The hardware market is expected to contract 5.7%, while growth in IT software and services will come down by nearly 10 percentage points to 4.9% and 0.9%, respectively.
India will also see a similar contraction from a 13% growth in IT spending in 2008 to 5.5% in 2009, global head of Gartner Research Peter Sondergaard and head of research-India Partha Iyengar said. The CIO survey that covered 1,527 enterprises across 48 countries and 30 industries and was carried out from September 15 to December 15, 2008.
IT budgets showed flat growth in North America and Europe, a marginal rise in Latin America and a marginal dip in Asia-Pacific. Overall, the total IT market globally is expected to grow by only 0.5% with a small revival expected in 2010 with growth picking up to 3.5%.
As a fall out of the global meltdown, CIOs now have limited scope to approve technology purchases with the decision in most cases resting with CFOs and in some cases, even CEOs, Mr Sondergaard said. The top three priorities for CIOs in this environment are improving business processes, reducing enterprise cost, and increasing enterprise workforce effectiveness, he said.
For the first time, there is also a convergence between the priorities of CIOs in India and the top three priorities of their global counterparts, indicating that the Indian IT environment is getting more global, Mr Iyengar said. The difference is only in the order of the priorities. For Indian CIOs, the number one priority is reducing enterprise cost compared with their global counterparts, for whom it is second priority.
“For the first time, we are seeing this level of co-relation. But, that it is a greater priority for Indian CIOs, which does not really make sense, and in our discussions with clients, we are seeking to temper this,” said Mr Iyengar. While India has also been hit by the crisis, the economy is still growing unlike many developed economies that are facing a recession.
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