Companies that have weathered the market downturn from late 2000 to early this year can expect a rebound in the coming years, according to the latest figures from analysts at International Data Corp (IDC).
IDC has capped the IT spend in Australia for 2000 at $24 billion, exceeding the growth of the national GDP (gross domestic product) by nearly 200 per cent.
According to Joel Martin, IDC Australia's research manager, IT spending is expected to grow by 10 per cent (compound annual growth rate) between 2000 and 2005. What's more, 2001 is showing signs of resurgence with a 12.7 per cent growth in IT spend, claims IDC.
Martin is predicting that sustained investment in new technology will harmonise the economy after what he sees as the worst market stumble since 1996.
Although Martin concedes the market spend for last year was a little down on expected, he claims there was a number of flat spots caused by isolated events, such as the Olympics. The market is likely to stablise as 2001 progresses, claims Martin, and resellers will have a more predictable market to position themselves in, rather than having to deal with a boom and bust cycle.
IDC has been mapping the IT sector against Australia's GDP since 1991, and Martin claims the two statistics are more interrelated than previously expected, but would not be drawn further on this research.
The research company will release its findings at IDC's annual IT industry briefing session, Direction 2001, on May 2 in Sydney.