EMEA IT spending to grow in 2013

Despite the ongoing economic malaise, research and analyst firm Gartner says projected IT spending in the EMEA region will reach $1.154 trillion in 2013. What will be the main drivers of IT spending in the year ahead?

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EMEA IT spending to grow in 2013 IT spending in Europe and MEA region will reach $1.154 trillion in 2013.
By  Manda Banda Published  December 25, 2012

Despite the ongoing economic malaise, research and analyst firm Gartner says projected IT spending in the EMEA region will reach $1.154 trillion in 2013. What will be the main drivers of IT spending in the year ahead?

IT spending in Europe, the Middle East and Africa (EMEA) region will reach $1.154 trillion in 2013, a 1.4% increase from 2012 projected spending of $1.138 trillion, according to research and analyst firm Gartner.

“This year is a pessimistic year for IT spending in Europe,” said Peter Sondergaard, senior vice president at Gartner and global head of Research. “In 2012, we estimate that IT spending will decline 3.6% in the EMEA region and 5.9% in Western Europe. However, the EMEA region will return to growth in 2013 and continue to grow through 2016 when spending will reach $1.247 trillion.”

Despite the ongoing economic malaise, Gartner sees pockets of growth in IT in Europe, mainly driven by devices and software. Big data will also change the landscape of IT, creating new jobs.

“The mobile device market is currently the bright spot of the IT industry,” said Sondergaard. “We are seeing tablets and smartphones significantly outpace purchases of traditional PCs.”

Gartner says that spending on mobile devices (notebook PCs, mobile phones, ultramobiles and tablets) in EMEA will amount to $136 billion in 2012, reaching $188 billion in 2016. In Western Europe, both consumers and businesses are adding tablets to their portfolio of mobile devices, increasing the total mobile device market growth by 8% in 2012. This contrasts with a decline of 5% in the mobile PC market in Western Europe. In Eastern Europe and the Middle East and Africa, mobile phone shipments will dominate the market, with tablet adoption increasing through to 2016.

According to Gartner, by 2016, two thirds of the workforce will have a smartphone or tablet device, which will change the way consumers buy software and transform the market. Traditional software providers will have to rewrite their applications for these tablet-based environments, and there will be a strong increase in software spending.

Gartner estimates that the EMEA region IT spending in software will grow 3.1% in 2013, nearly reaching the $100 billion mark in 2016.

Consumers and workers becoming more mobile will lead to a complete change of architecture. Information will expand and accelerate driven by the Nexus of Forces, becoming a higher strategic priority for businesses.

“The Nexus of Forces are the confluence and integration of cloud, mobile, social and information that will transform IT architecture and create a new information layer in our economy that will create new jobs, new revenue, and require new skills,” said Sondergaard.

Over the next three years, together with the North America region and Japan, EMEA will be the most active region in using big data. By 2015, 4.4 million IT jobs will be created globally to support big data, creating 1.3 million IT jobs in EMEA, including 1.2 million IT jobs in Western Europe alone, Gartner said.

However, according to Gartner, public education systems, as well as training within companies, are not sufficient to satisfy that demand. “We expect that organisations will be unable to fill out these positions, and we estimate that only 31% of the IT jobs will be filled in Western Europe. It places a requirement on our education systems and on companies to start to train those roles. We need these kinds of roles across all businesses to analyse data and information, which will ultimately generate new revenue,” said Sondergaard.

Last month, IT consultants Frost & Sullivan reported that the Middle East spending on IT is expected to cross $20 billion this year.

Frost & Sullivan said the region was witnessing a growing need for “added protection for consumers from an ever-increasing number of threats”.

The report said overall IT spending was set to rise more than 10% while the Middle East network security market is expected to average 18% growth between 2012 and 2018.

With persistent cyber attacks that aim to access critical and confidential data, it said sectors such as banking, government and defence, oil and gas, online retail and social networking sites, were among the most vulnerable in the Middle East.

This will open up “huge opportunities for vendors to identify and tap”, Frost & Sullivan added.

“The Middle East security market is growing. This growth is attributed mainly to government-led investments in ICT and other sectors,” the report said.

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