Gartner Predict Upturn in IT Spending

News Article - Friday, 04 January 2013 11:26

By: Kerry Butters Category: Connectivity

Gartner has revised its forecast for worldwide IT spending in 2013 due to "projected gains in the value of foreign currencies versus the dollar”.

Overall, IT spending is projected to reach a total of around $3.7tn this year, which represents a 4.2% growth rate on spending in 2012, which reached $3.6tn. This has been revised from a forecast of 3.8% growth in 2013 prediction in 3Q12.

"Uncertainties surrounding prospects for an upturn in global economic growth are the major retardants to IT growth," said Richard Gordon, managing vice president at Gartner.

"This uncertainty has caused the pessimistic business and consumer sentiment throughout the world. However, much of this uncertainty is nearing resolution, and as it does, we look for accelerated spending growth in 2013 compared to 2012."

It could be a good year for IT, as confidence in cloud services grow and security concerns are further allayed. However, Gartner’s long term predictions are now expected to average 4.5% until 2016.

Spending on devices including, PCs, mobiles, tablets and printers is now expected to reach $666bn this year, a growth rate of 6.3% on 2012. This has been reduced from initial projections which placed growth at a rate of 7.9% worldwide.

"The tablet market has seen greater price competition from android devices as well as smaller, low-priced devices in emerging markets," Mr Gordon said .

"It is ultimately this shift toward relatively lower-priced tablets that lowers our average selling prices forecast for 2012 through 2016, which in turn is responsible for slowing device spending growth in general, and PC and tablet spending growth in particular."

Software spending is expected to increase this year though, with a total spend of $296bn, which represents a growth rate of 6.4%. This, it is thought, will be driven by security storage and customer relationships management software and next year it’s thought that we will see more spending on big data, content management tools and data quality tools.

However, the biggest sector in IT continues to be telecom services, although the analysts believe that this will flatten out over the next couple of years. Gartner predict that mobile data will account from 33% of the telecoms market by 2016, an increase of around 10%.

For more information and further predictions, IT professionals and other interested parties can sign up for the "Gartner Worldwide IT Spending Forecast, 4Q12 Update — 2013 The Year Ahead webinar next week to be held at 1pm EST on January 8 2013. The event will cover IT spending in more depth.

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