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Worldwide IT Spending Forecast To Reach US$3.5 Trillion Next Year

Gartner has forecast growth in worldwide IT spending next year, with software and IT services revenue leading the way.

Spending will reach US$3.5 trillion in 2017, up 2.9 per cent year-on-year, according to the Gartner forecast.

Software spending is forecast to grow 6 per cent this year to US$333 billion, and another 7.2 per cent in 2017, totalling US$357 billion, with IT services forecast to grow 3.9 per cent this year, reaching US$900 billion, and a further 4.8 per cent in 2017, reaching US$943 billion.

Gartner has taken into account the potential impact of Brexit and the US election.

“The immediate impact of Brexit has caused modest growth in IT spending to turn negative for 2016,” John-David Lovelock, Gartner research vice president, commented.

“Without the UK, global IT spending growth would have been modestly positive at 0.2 per cent in 2016, but with the UK included, IT spending is expected to decrease 0.3 per cent. The immediate impact of the British pound will also cause the IT spending patterns to shift as prices for IT will increase.”

Gartner notes that there will be some changes in IT investment, with companies monitoring negotiations closely, such as in financial services, with analysts expecting some countries in Europe to put more investment into IT, offering a more viable option for EU countries than the UK.

Ahead of the US election, Gartner analysts do not believe the election, or winning candidate, will effect IT spending trends.

Worldwide IT Spending Forecast (Billions of US Dollars)

 

2016 Spending

2016 Growth (%)

2017 Spending

2017 Growth (%)

Data Centre Systems

173

1.3

177

2.0

Software

333

6.0

357

7.2

Devices

597

-7.5

600

0.4

IT Services

900

3.9

943

4.8

Communications Services

1,384

-1.1

1,410

1.9

Overall IT

3,387

-0.3

3,486

2.9

Source: Gartner (October 2016)

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