Menu
Digital transformation is giving IT spending a big boost

Digital transformation is giving IT spending a big boost

Financial services and manufacturing are now at the forefront, new IDC data suggests

Digital transformation may promise critical benefits for the companies undertaking it, but it's also delivering a major boost to IT spending around the world.

That's according to market researcher IDC, which on Monday released new data indicating that global spending on IT products and services will grow from nearly US$2.4 trillion in 2016 to more than $2.7 trillion in 2020. A big part of that growth, it says, will come from companies investing in cloud, mobility, and big data technologies as part of their digital transformation efforts. Such efforts are now particularly prominent in financial services and manufacturing.

Purchases on the consumer side accounted for nearly a quarter of all IT revenues in 2015, thanks largely to what IDC calls "the ongoing smartphone explosion," but in general consumer spending on PCs, tablets, and smartphones has been waning. Even the modest growth forecast for the tablet market will be driven by commercial segments, it said.

"While the consumer and public sectors have dragged on overall IT spending so far in 2016, we see stronger momentum in other key industries including financial services and manufacturing," said Stephen Minton, vice president of customer insights and analysis at IDC. "Enterprise investment in new project-based initiatives, including data analytics and collaborative applications, remains strong."

Healthcare will continue to be the fastest-growing industry in terms of IT expenditures, the report suggests, but banking, media, and professional services will show solid growth as well. The telecommunications industry will remain relatively sluggish, it said.

More than 45 percent of all IT spending worldwide will come from businesses with more than 1,000 employees, IDC predicted. The fastest growth, however, will come from those with between 100 and 999 employees.

The new figures are an update to IDC's report entitled "Worldwide Semiannual IT Spending Guide: Vertical and Company Size," which tracks IT spending across more than 100 technology categories and 53 countries.


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 CDODX

Featured

Slideshows

Malwarebytes shoots the breeze with channel, prospects

Malwarebytes shoots the breeze with channel, prospects

A Kumeu, Auckland, winery was the venue for a Malwarebytes event for partner and prospect MSPs - with some straight shooting on the side. The half-day getaway, which featured an archery competition, lunch and wine-tasting aimed at bringing Malwarebytes' local New Zealand and top and prospective MSP partners together to celebrate recent local successes, and discuss the current state of malware in New Zealand. This was also a unique opportunity for local MSPs to learn about how they can get the most out of Malwarebytes' MSP program and offering, as more Kiwi businesses are targeted by malware.

Malwarebytes shoots the breeze with channel, prospects
EDGE 2019: Channel forges new partnerships during evening networking

EDGE 2019: Channel forges new partnerships during evening networking

Partners, vendors and distributors reconnected during a number of social gatherings during EDGE 2019. The first evening saw the channel congregate for a welcome party at the Hamilton Island yacht club, while the main poolside proved to be the perfect stop for a barbecue on the final night.

EDGE 2019: Channel forges new partnerships during evening networking
Show Comments