Jeff Roster

A member of the Gartner Blog Network

Jeffrey Roster
Research VP
12 years at Gartner
15 years IT industry

Jeffrey Roster is a research vice president at Gartner as part of the Industry Market Strategies Worldwide unit covering the retail and wholesale industries. In this capacity, Mr. Roster consults on market strategies, competitive assessment of the IT services landscape, technology trends and the direction of IT spending to provide market research for IT vendors. Read Full Bio

Coverage Areas:

IT Spend by Industry Worldwide

by Jeff Roster  |  February 11, 2009  |  5 Comments

The Industry Market Strategies team has just finished the first installment of the 2009 forecasting exercise. The complete WW Industries forecast cube can be found at Forecast: Industry Market Strategies by Vertical Industry, Worldwide, 2006-2012, 1Q09 Update and is now available. You will need to be an IMS client to gain total access to the cube.  But below we can give you a few glimpses into trending in the major industries. For readers of this blog that are not familiar with Gartner’s internal organization IMS is the team that I work in. Our task is to understand all the trends, drivers and barriers that impact our industry’s and translate that into our IT forecasts.

Below are some insights into what we see happening:

Financial Services industry spent $558.4 billion World wide in 2008 on IT (hardware, software, IT services, internal services and telecommunications) and it will be reduced by 2.1% in the US in 2009, yet positive growth remains in the Middle East, Eastern Europe, Latin America and Asia/Pacific regions. The worldwide compound annual growth rate from 2007 through 2012 will be 3.4%. Key analysts are Susan Cournoyer and Vittorio D’Orazio.

Retail industry spent $ 153.3 billion worldwide in 2008 on IT(hardware, software, IT services, internal services and telecommunications). Growth in North America in 2009 will essentially be flat at 0.5%.  Asia/ Pac, Japan, Latin America, Middle east and Africa will also have positive growth in 2009, while Western and Eastern Europe will be negative. The worldwide compound annual growth rate from 2007 through 2012 will be 3.6%.  The key analyst is Jeff Roster.

Transportation industry spent $105.9 billion worldwide in 2008 on IT (hardware, software, IT services, internal services and telecommunications).  North America, Western Europe and Japan will have negative growth in 2009 while Asia?pac, Eastern Europe, Latin America, Middle East and Africa  will be positive.  The worldwide compound annual growth rate from 2007 through 2012 will be 3.6%.  The key analyst is Bob Goodwin.

Utilities industry spent spend $128.1 billion worldwide in 2008 on IT (hardware, software, IT services, internal services and telecommunications). Despite a positive outlook for the industry, utilities apply the brakes in 2009 on their pace of annual growth to 2.8%, slowing to less than half of the 2008 AG. The worldwide compound annual growth rate WW from 2007 through 2012 will be 5.2%.  The key analyst is Cynthia Moore.

Communications industry spent $368.3 billion worldwide in 2008 on IT (hardware, software, IT services, internal services and telecommunications).  North America, eastern Europe, Asia Pac Latin America and Middle East and Africa will have positive growth in 2009 while Western Europe and Japan will not. The worldwide compound annual growth rate WW from 2007 through 2012 will be 4.0%.  The key analyst is venecia Liu.

Manufacturing industries spent $482.7 billion worldwide in 2008 on IT products and services worldwide in 2008 on IT (hardware, software, IT services, internal services and telecommunications).  The worldwide annual growth rate will fall to negative 0.6% in 2009, while the compound annual growth rate for 2007 through 2012 has been lowered to 2.8% as a result of the global economic slowdown.  The key analyst is Ken Brant.

Healthcare spent $88 billion worldwide in 2008 on IT products and services worldwide in 2008 on IT (hardware, software, IT services, internal services and telecommunications).  2009 will see growth in IT spend in all the regions.  The worldwide compound annual growth rate WW from 2007 through 2012 will be 5%.  The key analyst is John Lovelock.

If any reporters are interested in getting in touch with any of the analysts you can reach out to Gartner analyst relations or leave a comment below and I will be happy to route to the analyst.

5 Comments »

Category: Retail Observations Retail Retail IT Marketing Retail Spending     Tags: , , , , , , , ,

5 responses so far ↓

  • 1 Joe Skorupa   February 11, 2009 at 7:52 pm

    Healthcare is one of the largest industries in the U.S., if not the world, and is gobbling up our GDP in big gulps and it only spends $88 billion on IT?…No wonder healthcare costs are out of control…No efficiency…

  • 2 Jeff Roster   February 12, 2009 at 2:11 am

    Hi Joe,
    it’s always good to know the eagle eye of the press is upon my writing. The below response to your comment is from my colleague John Lovelock who covers healthcare:

    This is a definitional problem – Healthcare is a huge piece of the USA’ GDP and the Gartner Healthcare Provider forecast is relatively small. The difference is Healthcare vs Healthcare Provider. When the stats are created for Healthcare cost, it includes; Insurance, Medicare, Medicaid, Veteran’s Administration, Medical Devices, Pharmaceuticals, Dental, home care, Assisted living, long term care, hospitals and physicians, etc. Gartner’s Healthcare Provider forecast only includes the last 3.

  • 3 Sank   February 16, 2009 at 2:34 pm

    Based ok what I’m seeing the retail assement feels optimistic for North America. How ever, I’m cautiously hopefully that there are signs that consumer spending has bottomed out. That would suggest that 2009 may start some recovery by a 3 or 4. too late for IT spending. 2010 however could start the recovery. Feels like 2011 will be the next big year for IT spend in retail. Crapshoot at this point.

  • 4 James Ransdall   May 15, 2009 at 8:02 pm

    I am actually looking for a report that breaks out IT spending as a % of revenue by sector. Any ideas.

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