Technology industry hits rock bottom -

Gartner has been adding up the numbers and dividing by its shoe size and claims that growth in technology spending by companies and the public sector is stabilising.

However, Big G warns that although things are stable activity is at much lower levels than last year. It puts the blame on the fact that everyone is worried about the economy, particularly in Europe.

The report's author Richard Gordon, research vice president at Gartner, told Bloomberg that while the challenges facing global economic growth persist the outlook has at least stabilised.

In other words things probably are not going to get any worse.

Gartner now expects global IT budgets to rise 3.0 percent this year to $3.6 trillion, instead of a previously forecast 2.5 percent gain.

That compares with a 7.9 percent rise in spending in the sector last year, Gartner said.

Growth is slowing in all businesses including computing hardware, enterprise software, IT services, telecom equipment and telecom services.

Even the $1.7 trillion telecom services market will see growth will slow to 1.4 percent this year from six percent seen in 2011, Gartner said.

It looks like the only thing that will grow significantly is cloud based services.