Tech spending may fall more in '09 than post-dotcom

Global information technology spending will fare worse in 2009 than during the dotcom bubble collapse of 2001, industry research firm Gartner said on Tuesday in cutting earlier projections. Gartner expects spending on hardware, software, services and telecommunications to fall 3.8 percent to $3.2 trillion this year, compared with forecasts of an increase just three months ago and reversing a solid pace of growth for 2008. The anticipated decline would also be worse than the 2.1 percent drop in 2001. A worsening global recession is discouraging corporations and consumers from spending to get the latest in technology, eroding revenue for companies from chip maker Intel Corp to computer vendor Dell. Many analysts say they do not expect a turnaround until late 2009 or 2010. The US stimulus package is unlikely to affect growth or employment before 2010, Gartner said. Hence, it expects IT spending to rebound modestly in 2010, rising more than 2 percent, but to accelerate to 5 percent growth in 2011.