Menu
Gartner: Global IT spending will grow slightly in 2014

Gartner: Global IT spending will grow slightly in 2014

Enterprise software spending will drive the growth in spending, while telecom spending is a drag

Global spending on IT and telecom products and services will grow 3.1 percent between 2013 and 2014, compared to just 0.4 percent a year earlier, with enterprise software spending driving much of the growth, according to Gartner projections.

Worldwide spending for IT and telecom will total US$3.8 trillion, with enterprise software spending driving the growth, Gartner said Monday. Enterprise software spending will total $320 billion, growing 6.8 percent in 2014, the research firm said.

In January 2013, Gartner predicted IT spending growth of 4.2 percent for the year, but growth ended up at 0.4 percent.

Businesses will spend money on analytics to make processes geared toward consumers more efficient and improve marketing, said Richard Gordon, Gartner's managing vice president. Enterprise spending in supply chain management will grow by 10.6 percent in 2014, he said in a press release.

Device spending will rise 4.3 percent to $697 billion, and IT services spending will increase 4.5 percent to $963 billion, Gartner predicted. Gartner had projected a 6.3 percent growth in device spending for 2013, but now says there was a decrease of 1.2 percent.

Telecom services will grow just 1.2 percent during the year, to $1.7 trillion, Gartner predicted. While telecom services will see the lowest growth of five categories measured by Gartner, it will still improve compared to 2013, when it dropped 0.5 percent, Gartner said. A year ago, the firm had predicted growth of 2.4 percent in that category.

Gartner's numbers differ from projections released by competitor Forrester Research, which released its IT spending predictions last week. The more optimistic Forrester expects global spending on technology to rise 6.2 percent to $2.2 trillion in 2014, but those numbers don't include telecom services, as Gartner does.

IT spending grew only 1.6 percent in U.S. dollars during 2013, Forrester said. IT spending will grow even faster in 2015, with a 8.1 percent growth rate, Forrester predicted.

Since last quarter, Gartner has lowered its IT spending forecast for 2014 from a 3.6 percent increase to 3.1 percent. Much of that decrease is due to a downward revision in telecom spending, with a growth in mobile-only households, declining voice rates in China and a more frugal usage pattern among European customers contributing to a lower growth rate in telecom services, Gartner said.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business managementGartnerbusiness issuesinvestmentsForrester ResearchRichard Gordon

Featured

Slideshows

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA

Reseller News has honoured the leading female front runners of the New Zealand ICT industry at the 2019 Women in ICT Awards (WIICTA) in Auckland. The awards recognised standout individuals across six categories, spanning Entrepreneur, Rising Star, Shining Star, Community, Technical and Achievement. Photos by Gino Demeer.

Leading female front runners of the Kiwi ICT industry honoured at 2019 WIICTA
Reseller News kicks off awards season in 2019 with Judges' Lunch

Reseller News kicks off awards season in 2019 with Judges' Lunch

The 2019 Reseller News Innovation Awards has kicked off with the Judges Lunch in Auckland with 70 judges in the voting panel. The awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors. Photos by Christine Wong.

Reseller News kicks off awards season in 2019 with Judges' Lunch
Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Show Comments