IT spending to grow 0.6 percent to $3.54 trillion in 2016: Gartner

IT spending to dip
Worldwide IT spending is expected to grow 0.6 percent to $3.54 trillion in 2016 $3.52 trillion in 2015, according to Gartner.

The year 2015 saw the largest US dollar drop in IT spending since Gartner began tracking IT spending. At least $216 billion less was spent on IT in 2015 than in 2014 and 2014 spending levels won’t be surpassed until 2019, a company statement said on Tuesday.

“The rising US dollar is the villain behind 2015 results,” said John-David Lovelock, research vice president at Gartner. “The US multinationals’ revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect an additional 5 percent growth.”

The devices market including personal computers, ultramobiles, mobile phones, tablets and printers is expected to decline 1.9 percent in 2016.
Worldwide IT Spending Forecast in 2016
The combination of economic conditions preventing countries such as Russia, Japan and Brazil from returning to stronger growth, together with a shift in phone spending in emerging markets to lower-cost phones, is overlaid with weak tablet adoption in regions where there was an expectation of growth, Gartner said.

Ultramobile premium devices are expected to drive the PC market forward with the move to Windows 10 and Intel Skylake-based PCs, it added.

Data centre systems’ spending is projected to grow 3 percent to $75 billion in 2016. The server segment has seen the largest change since the previous quarter’s forecast.

The worsening economic environment in emerging markets has had little effect on the global enterprise software spending forecast for 2016, with IT spending on pace to total $326 billion, a 5.3-percent increase from 2015.

Spending in the IT services is expected to increased 3.1 percent to $940 billion in 2016 against 4.5 percent dip in 2015 — due to accelerating momentum in cloud infrastructure adoption and buyer acceptance of the cloud model.

Telecom services spending is projected to decline 1.2 percent to $1,454 trillion. The segment will be impacted by the abolition of roaming charges in the European Union and parts of North America.

While this will increase mobile voice and data traffic, it will not be enough to counter the corresponding loss of revenue from lost roaming charges and premiums.