IDC also lowered its numbers in its report, setting at 6% growth worldwide versus a 7% increase last year in constant currency. But it is, overall, the most bullish on the outlook, thanks to strong demand in the first half of the year for tablets, smartphones, storage capacity and networking.
JPMorgan expects spending growth for this year to 1.9% increase in global spending versus the 2.2% increase it had previously forecasted.
One strong spot, reported IDC, was software spending. "In particular, the strength of software spending seems to prove that many enterprises have unlocked significant productivity and efficiency improvements," wrote Stephen Minton, an analyst with the research firm.
Although software growth has been strong, JPMorgan estimates that as much as 40% of the growth is at risk if European, U.S. government and financial services spending slows as a result of economic turmoil.
"While software applications and tools can help optimize IT environments, customers can put the brakes on projects in the initial stages of economic challenges," wrote JPMorgan. "Reason being, software-led projects can result in operational disruption or cost overage. Both risks are not what most CIOs want to have to explain to their CFOs in tough times, in our view."
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