Steady IT Spending Might Indicate Strong 2014

Copyright (c) 123RF Stock Photos
Copyright (c) 123RF Stock Photos

Noted research firm Gartner recently released its 2013 IT spending survey and projections, indicating that both 2013 and 2014 will bring growth in IT spending. Some highlights from the survey follow:

  • 2013 global IT spending will be $3.7 trillion, representing a two percent annual growth. For comparison, the 2013 fiscal year budget for the United States government is $3.8 trillion. However, for IT spending, the projected growth for 2013 was supposed to be 4.1 percent.
  • Telecom spending is growing at a slower rate than projected, but, at $1.7 trillion, it still represents almost half of the world’s total IT spending.
  • In 2013, device-spending grew only 2.8 percent over 2012 numbers.
  • 2013’s star category for spending increases was enterprise software, which is projected to grow at a 6.1 percent rate. However, the new software purchases aren’t translating into increased data center spending — that category will only grow 2.1 percent.

Gartner projects that 2013’s slow growth will create pent-up demand for IT services, leading to a greater increase in 2014. The report estimates that global IT spending will reach $3.9 trillion in 2014, representing a 4.1 percent increase. While telecom is projected to increase 2.3 percent, device sales are expected to grow 6.5 percent to $740 billion, and enterprise software is forecasted to post an even faster growth rate of 6.6 percent. The source of the growth in enterprise software is likely to be from new customer relationship management software. Whether the growth in device purchases comes from new PCs or from tablets, though, remains to be seen.