Slow economic conditions are cutting into corporate profits. But IT spending doesn't appear headed for a recession as businesses around the globe continue to buy new gear, according to Gartner researchers.

Worldwide IT spending should climb 8% this year to more than $3.4 trillion, they said Monday. After adjusting for the lower U.S. dollar, the increase in constant currency is a more modest 4.5%.

Still, the forecast shows a steady appetite for new technologies, with companies replacing old equipment and emerging regions of the world adding infrastructure.

The shift to cloud computing and service-based outsourcing models, where corporations pay for computing services accessed over the Internet, are driving new purchases.

Worldwide software spending appears to be the fastest growing category of IT, with projections pointing to a more than 10% rise, Gartner said.

By Mark Boslet, Editor at large.