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Global IT spending to reach USD 3.9 trillion in 2020: Gartner

BY PRIYANKA SANGANI, ET BUREAU | UPDATED: JAN 16, 2020, 02.39 PM IST Post a Comment

PUNE: Global IT spending is projected to increase 3.4% year-on-year to $3.9 trillion in

2020, according to the latest forecast by Gartner, Inc. The US-headquartered research
and advisory firm said the figure will cross $4 trillion next year.

“Although political uncertainties pushed the global economy closer to recession, it did not
occur in 2019 and is still not the most likely scenario for 2020 and beyond,” said John-
David Lovelock, distinguished research vice president at Gartner. “With the waning of
global uncertainties, businesses are redoubling investments in IT as they anticipate
revenue growth, but their spending patterns are continually shifting.”

Software will be the fastest growing major market this year, clocking double-digit growth at
Growth in enterprise IT spending for cloud-based
10.5%, as per the forecast. “Almost all of the market segments with enterprise software
offerings will be faster than growth in traditional (non-
are being driven by the adoption of software as a service (SaaS),” said Lovelock. “We cloud) IT offerings through 2022, Gartner said.
even expect spending on forms of software that are not cloud to continue to grow, albeit at
a slower rate. SaaS is gaining more of the new spending, although license-based software Big Change:
will still be purchased and its use expanded through 2023.” The end of Five-Year Plans: All you need to know

Growth in enterprise IT spending for cloud-based offerings will be faster than growth in traditional (non-cloud) IT offerings through 2022,
according to Gartner. Organisations with a high percentage of IT spending dedicated to cloud adoption is indicative of where the next-
generation, disruptive business models will emerge, it said.

The firm said the headwinds from a strong US dollar have become a deterrent to IT spending on devices and data centre equipment in
certain countries. “For example, mobile phone spending in Japan will decline this year due to local average selling prices going up as a
result of the US dollar increasing. The UK’s spending on PCs, printers, servers and even external storage systems is expected to
decline by 3%, too,” said Lovelock.

Despite last quarter showing the sharpest decline within the device market among all segments, it is expected to grow in 2020 with the
adoption of new, less expensive phone options from emerging countries.

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