Global IT spending to increase despite recession rumours, says Gartner

Despite uncertainty fuelled by recession rumours, Brexit, and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth. Well, at least that’s what John-David Lovelock, research vice president at Gartner, thinks

Gartner says in 2019, IT spending is projected to total $3.76 trillion, an increase of 3.2% from 2018.

However, according to Lovelock, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future.

He said: “Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things (IoT) devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not.”

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“IT is no longer just a platform that enables organisations to run their business on. It is becoming the engine that moves the business,” added Mr Lovelock. “As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together.”

Thanks to this shift to the cloud, enterprise software will carry on growing in popularity, worldwide spending in this area is projected to grow 8.5 per cent in 2019. It will grow another 8.2% in 2020 to a total $466 billion (see Table below).

Despite decline in the mobile phone market, overall, the device market is set to grow 1.6 per cent in 2019.

“In addition to buying behaviour changes, we are also seeing skills of internal staff beginning to lag as organisations adopt new technologies, such as IoT devices, to drive digital business,” said Mr Lovelock. “Nearly half of the IT workforce is in urgent need of developing skills or competencies to support their digital business initiatives. Skill requirements to keep up, such as artificial intelligence (AI), machine learning, API and services platform design and data science, are changing faster than we’ve ever seen before.”

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Andrew Ross

As a reporter with Information Age, Andrew Ross writes articles for technology leaders; helping them manage business critical issues both for today and in the future

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