Fitch: 2009 ‘Integration’ Spending May Prove a Bright Spot

As the economic downturn enters 2009, IT spending for integration-focused software, consulting and systems integration may prove to be the bright spot. The prediction comes from the 2009 Fitch Outlook, an IT spending projection from worldwide credit watcher Fitch Ratings.

Tags: Spending, Integration, Fitch, Services Sector, Financial Services, Consulting, Economic Downturn,


As the economic downturn enters 2009, IT spending for integration-focused software, consulting and systems integration may prove to be the bright spot this year, according to the 2009 Fitch Outlook, an IT spending projection from worldwide credit watcher Fitch Ratings.

In its 2009 predictions report, Fitch said spending on IT services/software related to integration projects will remain stable - and perhaps even grow.

As to other sectors, Fitch said IT hardware and semiconductor companies will be more susceptible to the downturn. and exposure to the financial services sector while most IT services—except the consulting and systems integration business—and software companies get most of their recurring revenue and free cash flow from long-term contracts or maintenance so they are better able to withstand an economic downturn.

Here are some summary points from Fitch's predictions:

  • IT spending worldwide will decline 2%-3% in 2009, led by the hardware and semiconductor segments.
  • The $1 trillion IT software, consulting and integration services sectors will remain fairly stable.
  • While IT spending in the small and medium business market has been growing over the last few years, Fitch expects this market to shrink in 2009, resulting in possible write-offs.
  • U.S. and Western Europe to decline greater than average, offset by relative strength in emerging markets.


  • Fitch's Outlook for 2009 is driven by weak market demand as capital investments and consumer spending decline, according to the company. The financial services vertical, which is the worldwide leader in terms of IT spending, will most likely experience the most severe reduction in spending with the hardware sector being most affected, according to Fitch.



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