Wed, Jul 02, 2014 - Page 14 News List

Global IT spending to ‘grow 2.1%’

By Kevin Chen  /  Staff reporter

Global spending on information technology (IT) is forecast to grow 2.1 percent to US$3.75 trillion this year, after experiencing flat growth last year, market researcher Gartner Inc said yesterday.

However, the growth forecast is lower than the researcher’s previous estimate of 3.2 percent growth, despite an expectation that an upturn in the global economy should prompt companies to spend more.

Gartner attributed the slower projection for this year to a reduction in growth expectations for devices, data center systems and, to some extent, IT services.

“Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook,” Gartner managing vice president Richard Gordon said in an e-mailed statement.

However, Gordon said he expects a return to “normal” spending growth levels from next year through 2018, saying that pricing and purchasing styles will reach a “new equilibrium.”

“IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalization,” he added.

Last year, the market registered flat growth, with IT spending worldwide totaling US$3.67 billion, according to the researcher’s tallies.

For this year, Gartner said all major segments in the IT field, from computing hardware to telecom services, are expected to grow by between 0.4 percent and 6.9 percent annually, amid recovering market sentiment and more credit available to companies.

Among the five major segments, spending on enterprise software is expected to continue seeing the strongest growth, rising 6.9 percent to US$321 billion this year from US$300 billion last year, Gartner said. Spending on devices — including PCs, ultramobiles, mobile phones and tablets — will grow 1.2 percent to US$685 billion this year, after expanding 1.1 percent last year.

Spending on IT services, data center systems and telecom services will grow this year by an annual 3.8 percent, 0.4 percent and 0.7 percent respectively, compared with a flat to minor contraction registered last year, Gartner forecast.

The report showed that IT spending in the Asia-Pacific region will reach US$746 billion this year, up 3 percent from last year, led by a 11 percent increase in Malaysia and a 6.8 percent expansion in India.

In Taiwan, total IT spending is likely to grow by 3 percent to NT$645.6 billion (US$21.57 billion) this year, Gartner forecast.

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