The worldwide IT spending is on pace to decline 5.2 percent this year. However, the IT industry will return to growth in 2010, with IT spending forecast to total $3.3 trillion, a 3.3 percent increase from 2009, according to research firm Gartner. In Asia Pacific, IT spending is expected to grow by five percent to reach $515.6 billion in 2010.
Peter Sondergaard, Senior Vice President at Gartner and Global Head of Research, said that this represented a fast V-shaped recovery for IT spending in the region. Emerging regions will resume strong growth, he said. By 2012, the accelerated IT spending and culturally different approach to IT in Asia will directly influence product features, service structures and the overall IT industry.
However, growth varies considerably by country, vertical market and IT sector. Sondergaard said that while software would post the strongest growth in Asia Pacific, telecommunications still represented the largest area of IT investment.
In Australia, the five-year outlook for enterprise IT spending is a compound annual growth rate of 1.3 percent, with total IT spending by Australian businesses to reach Australian dollar 56.4 billion by 2013. The vertical sectors with the highest IT spending growth would be communications (3.2 percent), healthcare (2.6 percent) and utilities (2.3 percent). While IT spending will increase next year, Gartner cautioned IT leaders not to be overly optimistic.
"While the IT industry will return to growth in 2010, the market will not recover to 2008 revenue levels before 2012," said Sondergaard. 2010 is about balancing the focus on cost, risk, and growth. For more than 50 percent of Chief Information Officers the IT budget will be zero percent or less in growth terms. It will only slowly improve in 2011, he added.
Sondergaard said that the three most-searched terms by Gartner clients on gartner.com provide some clues as to the priorities of IT leaders around the world. Cost remained the most-searched term during 2009, although it peaked in May, followed by cloud computing. "Next year will be the year when cloud computing moves from the discovery phase to small pilots, as part of organizations' desire to move from owned to shared IT," he said.
The third most-searched terms on gartner.com were business applications such as enterprise resource planning (ERP) and customer relationship management (CRM). "We believe that 2010 will see increased focus on optimization of business processes linked to software applications, what we call application overhaul. That is what will drive growth in the software segment," Sondergaard said.
Agencies
Showing posts with label fall. Show all posts
Showing posts with label fall. Show all posts
Tuesday, November 17, 2009
Sunday, June 21, 2009
IT, ITeS industry growth may fall to 5-year low, says IDC
Indian IT and IT-enabled services industry is expected to grow at 10.8 per cent in 2009, the lowest in the last five years, due to the global economic meltdown, a report said.
But in next four years, it would grow at 13.9 per cent to touch revenue of USD 110 billion, the report by analyst firm IDC India has said.
"In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8 per cent, which is the lowest in the last five years.
"Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over USD 110 billion in 2013," IDC India Country Manager Kapil Dev Singh said in the report.
The total revenue for the Indian IT industry in 2008 stood at over USD 57 billion in 2008.
"The ongoing global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013," IDC India Country Manager Kapil Dev Singh said.
The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.
Agencies
But in next four years, it would grow at 13.9 per cent to touch revenue of USD 110 billion, the report by analyst firm IDC India has said.
"In the backdrop of one of the worst ever global financial and economic meltdown, it is estimated that in 2009, the overall India IT/ITeS industry is expected to grow at 10.8 per cent, which is the lowest in the last five years.
"Going forward, the overall IT/ITeS industry is expected to grow at 13.9 per cent (CAGR 2008-2013) to touch over USD 110 billion in 2013," IDC India Country Manager Kapil Dev Singh said in the report.
The total revenue for the Indian IT industry in 2008 stood at over USD 57 billion in 2008.
"The ongoing global slowdown will definitely have its impact on the Indian IT sector. Despite that the industry is still expected to grow at a CAGR of 11.4 per cent by 2013," IDC India Country Manager Kapil Dev Singh said.
The domestic IT and IT-enabled services (ITeS) revenue is slated to touch about Rs 2,06,398 crore by 2013 from Rs 99,254 crore in 2008, growing at a CAGR of Rs 15.8 per cent, the study said.
Agencies
Saturday, January 3, 2009
Oil falls to below $42 a barrel in Asia
Oil prices fell below $42 a barrel Friday in Asia after Russia and Ukraine said a dispute over natural gas payments wouldn't affect shipments to Western Europe.
Light, sweet crude for February delivery fell $3.05 to $41.55 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Singapore. Trading was closed Thursday for New Year's Day.
The contract rose $5.57 on Wednesday, the last trading day of 2008, to settle at $44.60 after Russia threatened to cut off natural gas supplies to Ukraine. Russia followed through with that threat Thursday, though both countries pledged they would keep supplies to the rest of Europe flowing.
Russia's gas monopoly Gazprom shut off gas supplies after talks broke down over Ukraine's payments for past shipments and a new price contract for 2009. Gazprom said it had boosted natural gas deliveries through other pipelines to Western Europe.
The European Union depends on Russia for about a quarter of its gas, with some 80 per cent of that delivered through pipelines controlled by Ukraine.
Concerns that the week-old conflict between Israel and Hamas in Gaza could disrupt supplies in the oil-rich Middle East helped keep prices from falling further. Israeli troops massed on the Gaza border Thursday in preparation for a possible ground offensive.
Oil prices began 2009 the same way they spent the most of the second half of 2008 _ going down. Crude peaked at $147.27 a barrel in July before plummeting to as low as $33.87 on Dec. 19.
Prices fell 54 per cent last year after soaring 57 per cent in 2007.
Investors remain focused on the slowing global economy and its impact on crude demand. The Department of Energy said earlier this week that U.S. fuel consumption fell 3.7 per cent in the four weeks ended Dec. 26 from a year earlier.
In other Nymex trading, gasoline futures fell 3.55 cents to $1.03 a gallon. Heating oil dropped 3.55 cents to $1.41 a gallon while natural gas for February delivery slid 2.2 cents to $5.60 per 1,000 cubic feet.
In London, February Brent crude fell $3.31 to $42.28 a barrel on the ICE Futures exchange.
Source: Agencies
Light, sweet crude for February delivery fell $3.05 to $41.55 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Singapore. Trading was closed Thursday for New Year's Day.
The contract rose $5.57 on Wednesday, the last trading day of 2008, to settle at $44.60 after Russia threatened to cut off natural gas supplies to Ukraine. Russia followed through with that threat Thursday, though both countries pledged they would keep supplies to the rest of Europe flowing.
Russia's gas monopoly Gazprom shut off gas supplies after talks broke down over Ukraine's payments for past shipments and a new price contract for 2009. Gazprom said it had boosted natural gas deliveries through other pipelines to Western Europe.
The European Union depends on Russia for about a quarter of its gas, with some 80 per cent of that delivered through pipelines controlled by Ukraine.
Concerns that the week-old conflict between Israel and Hamas in Gaza could disrupt supplies in the oil-rich Middle East helped keep prices from falling further. Israeli troops massed on the Gaza border Thursday in preparation for a possible ground offensive.
Oil prices began 2009 the same way they spent the most of the second half of 2008 _ going down. Crude peaked at $147.27 a barrel in July before plummeting to as low as $33.87 on Dec. 19.
Prices fell 54 per cent last year after soaring 57 per cent in 2007.
Investors remain focused on the slowing global economy and its impact on crude demand. The Department of Energy said earlier this week that U.S. fuel consumption fell 3.7 per cent in the four weeks ended Dec. 26 from a year earlier.
In other Nymex trading, gasoline futures fell 3.55 cents to $1.03 a gallon. Heating oil dropped 3.55 cents to $1.41 a gallon while natural gas for February delivery slid 2.2 cents to $5.60 per 1,000 cubic feet.
In London, February Brent crude fell $3.31 to $42.28 a barrel on the ICE Futures exchange.
Source: Agencies
Sunday, December 7, 2008
Air fares in India fall in time for New Year
Air fares have finally begun their descent to more reasonable levels this holiday season. On Saturday, Vijay Mallya-owned Kingfisher and low cost carriers — IndiGo and SpiceJet — decided to follow Jet and Air India in cutting fuel surcharge for domestic flights.
While full service carriers have dropped surcharge by Rs 400, LCCs — that had not raised them in last two rounds of jet fuel price hikes — have also reduced by Rs 200 to Rs 300. Now all Indian carriers, whether full service or low cost, have uniform fuel surcharge: Rs 1,950 for short flights and Rs 2,700 for those over one hour flying time.
LCCs like IndiGo and SpiceJet and AI (domestic) don't charge the congestion fee of Rs 150 that Jet and Kingfisher do. In fact, with the difference in fuel surcharge gone, LCCs would be under pressure to cut basic fares. They are looking at re-introducing attractive advance booking fares to stimulate demand. At present, full service carriers' fares are about 20% higher than LCCs and the latter want this gap to be 25-30% to be significantly cheaper.
The airlines' worst fears are coming true as the combined impact of economic glut and terror alerts has cast its shadow on passenger numbers in the ongoing peak travel season. The number of fliers is going to further drop from January to March (traditionally the leanest travel season). "We have to stimulate demand by attractive fares," said SpiceJet director Ajay Singh.
While full service carriers have dropped surcharge by Rs 400, LCCs — that had not raised them in last two rounds of jet fuel price hikes — have also reduced by Rs 200 to Rs 300. Now all Indian carriers, whether full service or low cost, have uniform fuel surcharge: Rs 1,950 for short flights and Rs 2,700 for those over one hour flying time.
LCCs like IndiGo and SpiceJet and AI (domestic) don't charge the congestion fee of Rs 150 that Jet and Kingfisher do. In fact, with the difference in fuel surcharge gone, LCCs would be under pressure to cut basic fares. They are looking at re-introducing attractive advance booking fares to stimulate demand. At present, full service carriers' fares are about 20% higher than LCCs and the latter want this gap to be 25-30% to be significantly cheaper.
The airlines' worst fears are coming true as the combined impact of economic glut and terror alerts has cast its shadow on passenger numbers in the ongoing peak travel season. The number of fliers is going to further drop from January to March (traditionally the leanest travel season). "We have to stimulate demand by attractive fares," said SpiceJet director Ajay Singh.
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