Western European IT spending is expected to reach $460bn by 2015, according to a new study by International Data Corporation (IDC).
The IDC study found that IT spending in 2010 rebounded significantly across most Western European vertical markets, driven by largely by better economic conditions and the need for companies to resume discretionary investments postponed during the crisis.
The study said that fiscal consolidation, slower external and domestic demand, and increasing inflation are expected to impact the pace of recovery, with recent economic activity in the region showing signs of slowing down.
The study highlighted that companies are cautiously increasing IT investments. This is most evident in more stable and expanding economies such as Germany and France, while Italy and Spain still trail.
IDC expects, at a vertical level, the public sector, especially government, which has traditionally been a high-value, high-growth market, will see the biggest reductions in IT spending.
There are good medium- to long-term opportunities in utilities, with investments linked to both reducing operational costs and ensuring energy efficiency, and in retail, with investments aimed at enhancing sales performance and improving the customer experience, the study said.
Business services, with investments aimed at sensitive-data protection, IT organisation responsiveness, and customer care enhancements, is also expected to offer above-average opportunities, while growing opportunities are emerging in financial services institutions.
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