Global IT Spending To Drop In 2016 – But Oz Spend To Rise
Worldwide IT spending is forecast to total US$3.49 trillion in 2016, a decline of 0.5 percent over 2015 spending of $3.5 trillion dollars, according to market researcher Gartner.
But in Australia, IT spending should reach A$79.9 billion, an increase in local currency terms of 2.5 percent over 2015 spending of almost A$77.9 billion, Gartner says. And in 2017, spending Down Under should rise another five percent to $81.91 billion.
However in US dollars, Australia in 2016 will see a decline due to currency fluctuations, Gartner adds.
In a break-up of 2016 IT spending Down Under, Gartner estimates Australian spending on devices will total $10.65 billion; datacentre systems will be at $2.76 billion; software comes in at $10.2 billion; IT services at $29 billion; and comms services at $27.2 billion; for a grand total of $79.8 billion. This means devices and datacentre spending would be down slightly on 2015, but software and IT and comms services would be up.
Globally, Garter is looking to the reasons behind the 0.5 percent slump in overall worldwide IT spending.
“There is an undercurrent of economic uncertainty that is driving organisations to tighten their belts,” said John-David Lovelock, research vice president at Gartner.
“At the same time, the need to invest in IT to support digital business is more urgent than ever. Business leaders know that they need to become digital businesses or face irrelevance in a digital world.”