The Flood In Thailand Might Jeopardize I.T. Growth In 2012 [Study]

flood in Thailand

The graphs of IT industries are steadily increasing due to the large demand of the computing hardware and enterprise software in the market. Presently, Computing Hardware, enterprise software, IT services and the telecommunication equipment are the stronghold of the IT sector. Recently, a research analysis firm–Gartner–said that the growth rate of  IT sector might to be decreased in 2012 compare to its previous expected valuation due to the flood in Thailand.

According to a Gartner’s new study, IT sector would contribute $3.8 trillion revenue worldwide in 2012, mount up by 3.7% from 2011 and  6.9% from 2010. Previously, the firm had predicted 4.6% growth in revenue by the end of 2012, which is slightly greater than the present prediction.

The research vice president at the Gartner—Richard Gordon—said; “Faltering global economic growth, the eurozone crisis and the impact of Thailand’s floods on hard-disk drive (HDD) production have all taken their toll on the outlook for IT spending. Thailand has been a major hub for hard-drive manufacturing, both for finished goods and components. We estimate the supply of hard drives will be reduced by as much as 25 percent (and possibly more) during the next six to nine months. Rebuilding the destroyed manufacturing facilities will also take time and the effects of this will continue to ripple throughout 2012 and very likely into 2013.”

The flood had swathed one-third portion of the country which in not good hearsay for the businesses worldwide. HDD supply chain and PC OEMs were highly affected by the flood in Thailand last year.

The HDD supply constraint will definitely impact on the HDD and PC shipment in the first half of the year 2012. Despite of this tragedy, the telecom equipment is expected to have the strongest growth of 6.9% in 2012, followed by the enterprise software market having 6.4% growth. Recently an analyst said that the PC shipment of Microsoft had declined in Q4 last year due to flood in Thailand. The flood caused drop in Microsoft’s Windows segment’s revenue by 6.1% to $4.74 billion in Q4 last year from $5.06 billion in the same quarter a year ago.

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  1. Pingback: IT Spending Is Expected To Be 5% Worldwide In 2012 [STUDY]

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