Retail IT services spend plunges to £2.77bn

Retail companies are the most likely to take a knife to their IT software and services budgets this year.

According to research by analysts Pierre Audoin Consultants and TechMarketView, spending on IT software and services will fall 5.9 per cent year on year in 2009 to £2.77bn. The average fall across all industries, however, will be one per cent.

The picture is slightly less bleak for retail next year, however. Total IT services and software spend by retail companies will fall around one per cent in 2010 as retail companies continue to focus their attentions away from expanding their operations and towards cutting costs.

However, retail services spend will recover in 2011, showing almost four per cent growth.

According to the analysts, the public sector's services spend will stand in stark contrast to retail's this year, as government outsourcing and security projects will push growth in the sector 3.7 per cent.