Tuesday, August 17, 2010

Gartner reduces IT Spending Outlook for 2010, but still predicts a positive 2.9% growth

Gartner's latest IT spending outlook for 2010 remains positive, but is less optimistic than prior forecasts, as worldwide growth stalled over the summer. The latest research estimates place worldwide enterprise IT spending growth at 2.9 percent in 2010, to surpass $2.4 trillion. The 2010 growth forecasts, although positive, are lower than the original 4.1 percent increase that the research firm had originally predicted earlier in the year, but still better than the challenges faced in 2009, when worldwide IT spending totaled $2.3 trillion, a 5.9 percent decline from 2008.

According to Kenneth Brant, research director at Gartner, "IT solutions that deliver ‘cost optimization’ will be a priority for enterprises through 2011, even as markets return to growth."

We agree with this forecast for IT, and most other business investments as well, where reducing costs and "doing more with less" will be the mantra. This sustained trend in buyers we have termed Frugalnomics, an age of austerity where buyers will demand quantified bottom-line impact, quick payback, high return on investment and superior value from each investment.

In the face of the continued cost optimization focus predicted by Gartner, IT and other B2B sellers need to fundamentally change the way they engage with prospects. Firms that help diagnose and uncover cost saving opportunities and put in place cost savings roadmaps will get the attention of executives and priority for key decision making resources. To help stalled solution sales processes, proactive business value quantification will be needed to assure that only those projects with superior bottom-line impact are selected. As each solution decision will be scrutinized by executives, quantifying the value and total lifecycle savings of your solution versus competitors will assure that the best solution is selected for investment of ever more precious budget funds.

The full article on Gartner's research can be found at:
http://www.cioinsight.com/c/a/Latest-News/IT-Spending-Gartner-Sees-Growth-in-2010-Beyond-610801/?kc=CIOQUICKNL08172010STR1

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