Gartner Says IT Spending Worse Than After Dot-Com Bust

With the global economy tanking, IT spending this year will drop to a level much worse than what was seen following the dot-com bust in 2001, a market research firm said Tuesday.

Companies worldwide will spend 3.8% less on IT than in 2008, or $3.2 trillion compared with nearly $3.4 trillion, Gartner said. When the Internet investment bubble burst eight years ago, IT spending fell by 2.1%.

Gartner has been lowering its IT spending estimates for months. Last October, the research firm said its "worst-case scenario" called for a 2.3% increase in IT spending for 2009. By February, Gartner had lowered its prediction to an increase of 0.5%.

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