IT Spending To Hit $3.8 Trillion

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Gartner Inc. says IT spending worldwide will hit $3.8 trillion this year, and center most around devices and enterprise software.

The spending will represent a rise from a flat year in 2013, which totaled $3.7 trillion, Gartner said.

And the outlay on devices including PCs, mobile phones and tablets will be an increase, too — up by 4.3 percent. Meantime, enterprises will put more money into software as well, with customer relationship and supply chain management experiencing the most demand. Gartner predicts the enterprise software segment in 2014 will show an annual growth rate of 6.8 percent.

“Investment is coming from exploiting analytics to make B2C processes more efficient and improve customer marketing efforts," said Richard Gordon, managing vice president at Gartner. "The focus is on enhancing the customer experience throughout the presales, sales and post sales processes."

While the predicted numbers remain high, they are slightly less than Gartner's fourth-quarter 2013 IT-spending reports.

"A downward revision of the 2014 forecast growth in spending for telecom services – a segment that accounts for more than 40 percent of total IT spending – from 1.9 percent to 1.2 percent is the main reason behind this overall IT spending growth reduction," said Gordon. "A number of factors are involved, including the faster-than-expected growth of wireless-only households, declining voice rates in China and a more frugal usage pattern among European customers. The latter coincides in Western Europe with a breakout of fierce price competition among communications service providers to retain customers and attract new ones."

Finally, Gartner also pushed down its IT services compound annual growth rate forecast for the 2012-2017 period. That's because  fewer companies support their own colocation, hosting and data centers, Gartner found.

"We are seeing CIOs increasingly reconsidering data center build-out and instead planning faster-than-expected moves to cloud computing," Gordon said.

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