UK IT spending dropped 6.2% in 2001 from ₏54 billion to ?50 billion, a smaller drop than in most other European countries, according to a new brief by Forrester Research.
Europe-wide, IT expenditure will dip to 0.7% growth in 2002 and flatten out to 7% annual growth in 2004 because of slow population growth, years of excessive demand for IT skills and low penetration of the internet, says the report.
While the US predicts double-digit IT spending growth by 2004, the European economic climate will steer towards a moderate IT recovery where total IT spending will grow only 6% in 2003, Forrester believes.
“In spite of economic unity, Europe’s IT sector doesn’t have the flexibility – as seen in the US sector – needed to get back to double-digit growth after the 2001 dip,” said Forrester Senior Analyst Charles Homs. “With an average population growth of 0.3% per annum, European consumers’ technology consumption simply can’t keep up with the Americans. Countries like the Netherlands, France, and Germany suffer from a shortage of skilled IT personnel and European governments don’t lead by example with eBusiness.”
