Logo Header Menu

Gartner says IT spending in EMEA will return to growth in 2020

IT spending in EMEA will return to growth at $798 billion in 2020, an increase of 3.4% from 2019, according to the latest forecast by Gartner — a relief for CIOs and IT departments Gartner says IT spending in EMEA will return to growth in 2020 image

IT spending has decreased over the last three years and yet IT teams are expected to do more than ever before. The CIOs’ IT department is now well and truly aligned with the overall business strategy, or at least it should be, and is expected to contribute to innovation and revenue growth — they’re not just “keeping the lights on” anymore.

It should come as welcome news to the CIOs and IT departments of enterprises then, that “2020 will be a recovery year for IT spending in EMEA after three consecutive years of decline,” according to John Lovelock, research vice president at Gartner.

“This year declines in the Euro and the British Pound against the US Dollar, at least partially due to Brexit concerns, pushed some IT spending down and caused a rise in local prices for technology hardware. However, 2020 will be a rebound year as Brexit is expected to be resolved and the pressure on currency rates relieved.”

Gartner revises down its 2019 IT spending predictions amid data centre decline

Worldwide data centre spending in 2019 will fall by 2.8%; however, overall growth in IT spending will not be offset. Read here

A software-first world

Spending on devices (including PCs, tablets and mobile phones) is set to decline 10.7% in 2019, while enterprise software spending continues to rise.

Enterprise software will remain the fastest-growing market segment in 2020. EMEA spending for enterprise software will increase 3.4% and 9.2% in 2019 and 2020, respectively. Software-as-a-service (SaaS) will achieve 14.1% growth in 2019 and 17.7% in 2020.

IT spending catalysed by regulatory compliance demands

The complex geopolitical environment and constant barrage of data breaches across EMEA has pushed regulatory compliance to the top of the priority list for many organisations. EMEA spending on security will grow 9.3% in 2019 and rise by 8.9% in 2020.

“Globally, security spending is increasing and being driven by the need to be compliant with tariffs, trade policies and intellectual property rights. In EMEA, privacy and compliance concerns, further driven by GDPR, take precedence,” explained Lovelock.

How to approach modern regulatory change management in financial services

The pace of change and volume of financial regulation is overwhelming, but RegTech solutions offer banks a modern approach to regulatory change management. Read here

Cloud spending could lead to digital dominance

The US is leading cloud adoption and accounts for over half of global spending on cloud, which will total $140.4 billion in 2020, up 15.5% from 2019.

In terms of cloud spending, the UK holds the No. 2 position behind the US. The UK spends 8% of IT spending on public cloud services, which will total $16.6 billion in 2020, up 13.2% from 2019.

In EMEA, the overall spending on public cloud services will reach $57.7 billion in 2020, up from $50 billion in 2019.

Gartner predicts that organisations with a high percentage of IT spending dedicated to the cloud will become the recognised digital leaders in the future.

“Organisations in Europe, regardless of industry, are shifting their balance from traditional to digital — moving toward ‘techquilibrium’, a technological balancing point that defines how digital an enterprise needs to be to compete or lead,” added Lovelock.

“Not every company needs to be digital in the same way or to the same extent. This move towards rebalancing the traditional and digital is clearly visible amongst EMEA companies.”

Latest news

divider
Cloud & Edge Computing
Public cloud revenue set to grow 17% in 2020, according to Gartner

Public cloud revenue set to grow 17% in 2020, according to Gartner

13 November 2019 / Gartner has today released its forecast for the worldwide public cloud services market which is [...]

divider
DevOps
bet365 adopts DevOps to improve site reliability

bet365 adopts DevOps to improve site reliability

13 November 2019 / bet365, the online gambling company, has today announced the creation of a new department that [...]

divider
Releases & Updates
The leading customer onboarding and resource management platform on Salesforce

The leading customer onboarding and resource management platform on Salesforce

11 November 2019 / Precursive and Taskfeed have merged to become the leading customer onboarding and resource management platform [...]

divider
People Moves
Shutterstock appoints Peter Silvio as new CTO

Shutterstock appoints Peter Silvio as new CTO

11 November 2019 / Shutterstock, Inc. has today announced the appointment of Peter Silvio as its new chief technology [...]

divider
Retail
The UK retail CIO and CTO must invest in tech to match the online experience

The UK retail CIO and CTO must invest in tech to match the online experience

11 November 2019 / The online experience is seamless and the physical store must match this if the ‘high [...]

divider
Automation
Tech Leaders Summit: How to start your RPA and AI journey

Tech Leaders Summit: How to start your RPA and AI journey

11 November 2019 / During a lively panel discussion at Tech Leaders Summit, business leaders, who’ve embarked on RPA [...]

divider
Energy
Origami Energy appoints Ocado’s CTO Paul Clarke to its advisory board

Origami Energy appoints Ocado’s CTO Paul Clarke to its advisory board

11 November 2019 / Origami, a leading technology provider to the energy industry, is expanding its advisory board team [...]

divider
Blockchain
Demystifying blockchain and identifying use cases

Demystifying blockchain and identifying use cases

8 November 2019 / The 10th anniversary of bitcoin earlier this year rightly prompted a lot of soul-searching amongst [...]

divider
Immersive Technology
Audience immersion and the 5G opportunity

Audience immersion and the 5G opportunity

7 November 2019 / Excitement about 5G’s potential has reached fever pitch. It’s been touted as a game-changer for [...]

Do NOT follow this link or you will be banned from the site!

Pin It on Pinterest