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Gartner Predicts Global IT Spending to Grow 3.2 Percent in 2019

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CEO Insights Team

CEO Insights Team

Gartner, a global leading research and advisory company reports that worldwide IT spending is projected to total $3.8 trillion in 2019, with an increase of 3.2 percent from last year. Gartner is also analyzing the emerging trends that are driving digital transformation and IT spending.

John David Lovelock, Research Vice President, Gartner, says, “While currency volatility and the potential for trade wars are still playing a part in the outlook for IT spending, it is the shift from ownership to service that is sending ripples through every segment of the forecast. What this signals, for example, is more enterprise use of cloud services — instead of buying their own servers, they are turning to the cloud. As enterprises continue their digital transformation efforts, shifting to ‘pay for use’ will continue. This sets enterprises up to deal with the sustained and rapid change that underscores digital business.”

PCs, laptops and tablets have reached a new equilibrium state. These markets currently have stable demand from consumers and enterprises. Vendors have only subtle technology differentiation, which is pushing them to offer PC as a Service (PCaaS) in order to lock clients into multiyear recurring revenue streams and offer new bundles service options

Reports suggest that, enterprise software spending to experience highest growth with an 8.3 percent increase along with cloud software which will grow at more than 22 percent this year. Almost eighty eight percent of the surveyed global CIOs plans to deploy cybersecurity softwares and other technologies in next 12 months. In a recent Gartner study, almost 46 percent of organizations indicated that IT services and supplier consolidation was in their top three most effective methods. Spending for PCs, tablets and mobile phones is expected to grow 2.4 percent in 2019 reaching $706 billion and the demand for PCs in corporate sector should continue until 2020.

“PCs, laptops and tablets have reached a new equilibrium state. These markets currently have stable demand from consumers and enterprises. Vendors have only subtle technology differentiation, which is pushing them to offer PC as a Service (PCaaS) in order to lock clients into multiyear recurring revenue streams and offer new bundles service options,” Lovelock adds.

Gartner’s IT spending forecast methodology relies hugely on the analysis of sales by thousands of vendors across the entire range of IT products and services. It uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast. The quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and other segments.

Being a trusted advisor and objective resource for more than 15,000 organizations in more than 100 countries across all major functions, Gartner equips business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities today. Gartner Symposium/ITxpo is world’s most important gathering of CIOs and senior IT leaders, uniting a global community of CIOs with the tools and strategies. A huge amount of senior business and IT leaders seek insights to ensure that their IT initiatives are key contributors to their enterprise’s success.