Tag: worldwide IT spending

Worldwide IT spending to be flat in 2016

GartnerWorldwide IT spending is forecast to be flat in 2016, totaling US$3.41 trillion, according to Gartner, Inc. This is up from last quarter’s forecast of negative 0.5 percent growth. The change in the forecast is mainly due to currency fluctuations.

“The current Gartner Worldwide IT Spending Forecast assumes that the UK would not exit the European Union. With the UK’s exit, there will likely be an erosion in business confidence and price increases which will impact UK, Western Europe and worldwide IT spending,” said John-David Lovelock, Research Vice President of Gartner.

While the UK has embarked on a process to change, that change is yet to be defined. The “leave” vote will quickly affect IT spending in the UK and in Europe while other changes will take longer. Staff may be the largest immediate issue. The long-term uncertainty in work status will make the UK less attractive to new foreign workers. Retaining current non-UK staff and having less access to qualified new hires from abroad will impair UK IT Departments.

Worldwide IT spending to remain flat this year

GartnerThe global economy is hitting IT spending, with Gartner predicting just a 0.6 percent increase over 2015 spending of US$3.52 trillion.

2015 saw the largest US dollar drop in IT spending since Gartner began tracking IT spending. US$216b less was spent on IT in 2015 than in 2014 and 2014 spending levels won’t be surpassed until 2019.

“The rising US dollar is the villain behind 2015 results. US multinationals’ revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect an additional five percent growth,” said John-David Lovelock, Research Vice President of Gartner.

Gartner adjusts worldwide IT spending projection downwards to 2% growth this year

GartnerGartner has adjusted its worldwide IT spending forecast for 2013 downwards to US$3.7 trillion in 2013. Last quarter, the research firm predicted a 4,1 percent increase compared to 2012 but that projection has been sliced by half to 2 percent. This reduction takes into account the impact of recent fluctuations in US dollar exchange rates. 

The Gartner Worldwide IT Spending Forecast is the a leading indicator of major technology trends across the hardware, software, IT services and telecom markets. For more than a decade, global IT and business executives have been using these highly anticipated quarterly reports to recognise market opportunities and challenges, and base their critical business decisions on proven methodologies rather than guesswork.

“Exchange rate movements, and a reduction in our 2013 forecast for devices, account for the bulk of the downward revision of the 2013 growth,” said Richard Gordon, Managing Vice President at Gartner.