IDC expects global IT spending to grow 6.1 per cent in 2005.
The analysts predict "enormous turbulence", consolidation and realignement in several key IT industry sectors. IDC estimates that the value of the IT market will exceed $1 trillion for about $60 billion worth of net spending growth. The company expects that growth in IT spending will continue to be moderate through 2008.
"This growth has some assumptions tied to it, namely a modest rise in the US growth rate, a mild rebound in Western European countries, the continued weakness in Japan and Latin America, and continued high growth in emerging markets like Central and Eastern Europe and Asia Pacific," said Frank Gens, senior vice president of research at IDC.
In order to gain a higher growth rate, the industry will need to do a better job at three things, he said. It has to target finer-grained growth segments, it has to deal with an overall environment that "is all about the convergence of individual and soiled market segments," and it must aggressively attack cost structures.