Global IT spending down in 2016, to rise in 2017

Gartner sees 0.3% decline in worldwide IT spending total in 2016

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Global IT spending down in 2016, to rise in 2017 Brexit will impact global IT spending but the US presidential election will not, says Lovelock.
By  Mark Sutton Published  October 23, 2016

Increased spending on software and IT services will drive worldwide IT spending to reach $3.5 trillion in 2017, according to Gartner.

The analyst company predicts IT spending to rise by 2.9%, from $3.4trn in 2016. For 2016, overall worldwide IT spending will actually decline by 0.3%.

Software spending will grow by 6% this year and 7.2% in 2017, for a total of $357bn, Gartner reports, while IT services will grow 3.9% in 2016 and 4.8% in 2017, to reach $943bn.

Gartner claims that the UK's decision to leave the European Union will have a negative overall impact on global IT spending growth, while it does not expect the US presidential election or the winning candidate will have an impact on figures.

John-David Lovelock, research vice president at Gartner, commented: "The immediate impact of Brexit has caused modest growth in IT spending to turn negative for 2016," said John-David Lovelock, research vice president at Gartner. "Without the UK, global IT spending growth would have been modestly positive at 0.2% in 2016, but with the U.K. included, IT spending is expected to decrease 0.3%. The immediate impact of the British pound will also cause the IT spending patterns to shift as prices for IT will increase.

"We have also taken into account the US presidential race, as well as a potential rate cut by the Federal Reserve. Typically, there is a slight pause in IT spending leading into the election, and then a relief in spending, subsequently. However, trends have shown that IT spending in the US is not dependent on presidential leadership, so neither candidate should have a significant impact on IT spending in the near-term."

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