Gartner Report Indicates Increase In Global IT Spending For Next Two Years

By: Talha Bhatti  |   March 28th, 2013   |   Business, News

Technology research and analysis firm Gartner recently released their annual projections for global spending on IT for the upcoming years. The study looks at a large swath of technology areas including hardware, software, enterprise and telecom to show that the world will keep spending more on IT for the next 2 years. The numbers indicate a that this year the world will spend 4.1% than 2012 for a total of $3.8 trillion. This is a good sign from the low 2.1% growth rate seen in the previous year. Spear heading the recovery is mobile and enterprise services while legacy technology is staking a dip.  Gartner predicts that the growth rate should be expected to stay the same for 2014 as well.

 

The report also shows that Telecommunication spending is the biggest chunk of the global IT sector. This 45% or $1.69 billion of spending lets us know that the future is in the many mobile devices that will be using the telecom services on offer. However, the same sector also has seen a drop in the demand and spending for areas like fixed voice services. Consumers are looking to go more mobile devices instead of fixed telephones and the drop and increase have canceled each other out to give a flat growth rate.

 

Gartner also notes that hardware sales are going to be the hottest growth sector because of the whole sale adoption of mobile devices by consumers. The areas will be 19% of all IT spending for a total of $718 billion. Once again there is also a down side because of declining PC sales and a drop in demand for printers.

 

Gartner’s research vice president John Lovelock claims that none of the declining areas are going extinct but states that:

“The global steady growth rates are a calm ocean that hides turbulent currents beneath. The Nexus of Forces — social, mobile, cloud and information — are reshaping spending patterns across all of the IT sectors that Gartner forecasts. Consumers and businesses will continue to purchase a mix of IT products and services; nothing is going away completely. However, the ratio of this mix is changing dramatically and there are clear winners and losers over the next three to five years, as we see more of a transition from PCs to mobile phones, from servers to storage, from licensed software to cloud, or the shift in voice and data connections from fixed to mobile.”

 

Gartner’s report also claims that enterprise software is likely to be the second largest area of growth in IT spend. An expected global spend of $297 billion should be caused by demand in database management systems, data integration tools and supply chain management.

Source: TechCrunch