Global IT spending to grow 2.4% in 2015: Gartner1 min read . Updated: 12 Jan 2015, 03:54 PM IST
Global technology spending in 2015 will rise to $3.8 trillion in 2015, up 2.4% from $3.7 trillion in 2014, Gartner said
Mumbai: Technology research firm Gartner Inc on Monday lowered its IT spending forecast for 2015 to 2.4% from the previously estimated 3.9%, attributing the change largely to the stronger dollar.
Global technology spending in 2015 will rise to $3.8 trillion in 2015, up 2.4% from $3.7 trillion in 2014, Gartner said.
Maximum spending is expected to be on telecom services at $1.6 billion, a 0.7% increase over 2014, followed by IT services at $981 billion, a 2.5% increase over 2014 and devices spending at $732 billion, a 5.1% increase over 2014. Enterprise software spending is expected to grow the fastest at 5.5% over 2014, totalling $335 billion in 2015, Gartner said.
“The rising US dollar is chiefly responsible for the change (in growth forecast for IT spending). In constant currency terms, however, the downward revision is only 0.1%," said John-David Lovelock, research vice-president at Gartner.
Elaborating on each segment, Gartner said that in devices, the smartphone market is becoming polarized between the high- and low-end market price points, squeezing the opportunity for mid-range smartphones.
In data centre systems, spending will be affected by extensions in replacement life cycles and a faster-than anticipated switch to cloud-based services. In enterprise software market, Gartner predicted more price erosion and vendor consolidation in 2015 due to fierce price competition between cloud and on-premises software providers.
The reduction in IT services outlook in 2015 has been attributed to reduction in software support services, lower growth rates for enterprise software and lowering of short-term growth rates in Russia and Brazil, due to declining economic conditions and political uncertainty in both countries.
Finally, telecom services spending will be impacted by various factors impacting each national market, with the primary driver for growth being a reduction in expectations for mobile voice revenue across several markets in Western and Eastern Europe (such as Austria and Italy), owing to the declining growth of new devices sold in the region, the Gartner report said.