Gartner has been pumping out its predictions for the upcoming year, and despite there being turmoil and uncertainty in other parts of the world, IT spending looks to be on the rise in 2019.

In fact the research firm says that IT spending across the globe is set to grow by as much as 3.2 percent compared to 2018.

This would therefore add up to a total of $3.76 trillion during 2019.

Despite uncertainty fuelled by recession rumours, Brexit, and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth,” notes research vice president at Gartner, John-David Lovelock.

“However, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future. Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things (IoT) devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not,” he explains further. 

Devices spending, of which IoT devices contributes heavily in Gartner’s predictions, is expected to reach as high as $679 million for 2019, with a 1.9 percent increase compared to the previous year. Looking a year further, Garner believes this incremental rise will remain steady during 2020 at 1.4 percent with $689 million.

Growth (%)
Growth (%)
2020 Spending 2020 Growth (%)
Data Centre Systems 202 11.3 210 4.2 202 -3.9
Enterprise Software 397 9.3 431 8.5 466 8.2
Devices 669 0.5 679 1.6 689 1.4
IT Services 983 5.6 1,030 4.7 1 079 4.8
Communications Services 1 399 1.9 1 417 1.3 1 439 1.5
Overall IT 3 650 3.9 3 767 3.2 3 875 2.8

Source: Gartner

Part of the reason why IoT devices will receive greater focus in the coming year is a result of mobile devices seeing a distinct decline. According to Gartner this has to do with the fact that many of the saturated smartphone markets – United States, China and parts of Western Europe – are seeing a definitive slowdown in consumers wanting to buy phones.

“With Samsung facing challenges bringing well-differentiated premium smartphones to market and Apple’s high price-to-value benefits for its flagship smartphones, consumers kept their current phones and drove the mobile phone market down 1.2 per cent in 2018,” explains the research firm.

“In addition to buying behaviour changes, we are also seeing skills of internal staff beginning to lag as organisations adopt new technologies, such as IoT devices, to drive digital business,” says Lovelock.

“Nearly half of the IT workforce is in urgent need of developing skills or competencies to support their digital business initiatives. Skill requirements to keep up, such as artificial intelligence, machine learning, API and services platform design and data science, are changing faster than we’ve ever seen before,” he adds.

Gartner, led by Lovelock and other senior analysts, will be delving deeper into its findings with their spending forecast for Q4 2018.

[Image – CC 0 Pixabay]