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IDC: IT services spend forecast to hit $3.2 billion

IDC: IT services spend forecast to hit $3.2 billion

Although companies are cutting back on non-essential IT projects, a new report from IDC on service spending forecasts a bright future.

Called New Zealand IT Services 2009-2013 Forecast and Analysis, the report shows IT service spending will reach $3.2 billion in 2013. This means a compound annual growth rate of 3.8 percent over the next five years.

IDC senior services analysts Rasika Versleijen-Pradhan says the company expects a large proportion of IT services spend long-term will be in the areas of converged communications, information sharing and transformational infrastructure.

“Through new and improved delivery models, such as cloud computing and technologies around virtualisation, will further help to facilitate the uptake of technology investments that would be otherwise be considered too costly,” she says.

Report co-author Adam Lee says this is a period where information is power.

“We are seeing significant uptakes in areas of knowledge management and collaboration. Enterprises are heavily relying on business intelligence and analytics in this time of high uncertainty. Microsoft SharePoint, Cisco WebEx, and Sap all- in-one are a few of the popular solutions.”

The report also forecasts that infrastructure services such as business continuity, security and storage is expected to reach $1 billion by 2013.


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