Global enterprise IT spending forecast to grow marginally in 2013

While global enterprise IT spending is set to rise in the coming year, government IT spending will decline by 2 percent thanks to poor economic outlooks and austerity measures on the state coffers.
Written by Zack Whittaker, Contributor

Latest research from Gartner points to currently flat IT spending with an eye for an increase of 2.5 percent in the coming calendar year.

The current global economic outlook has "deteriorated" in 2012, leading to "scant overall growth in enterprise IT spending," says Gartner research director Kenneth Brant. The research firm is looking ahead to the third quarter suggesting that, on the assumption that U.S. and European fiscal crises are avoided, could ultimately grow substantially. 

Worldwide enterprise IT spending will grow from a projected 2012 figure of $2.603 trillion, to $2.679 trillion in 2013, with banking, communications, media and services (CMS) offering the largest opportunities for growth in the coming three years. 

"Most enterprises have already significantly cut discretionary IT spending growth over the past several years and, barring a global economic catastrophe and significant contraction of operations, they have little room to reduce IT spending further over the long run," Brant added.

The dubbed CMS sector is forecast to grow 3 percent in 2013 to $426 billion, up from 2012's figure of $414 billion, with firms typically spending around 5 percent of their revenue on IT over a five-year period. This may be above the median for most other industries, but IT expansion is where it counts, particularly for the tech-centric sectors. 

Brant noted: "With demands for a secure Internet connected backbone and faster wireless data services, coupled with the pervasiveness of social media and video, these industries will need to continue to invest in IT."

Meanwhile, government IT sector spending is set to decline 2 percent through 2013, dropping $2 billion in total down to $445 billion next year. The main reason is that austerity measures have affected government spending across the globe, in particular in the U.S. and Europe. 

"The need for greater efficiency and productivity gains in industries operating under severe fiscal constraints can also create opportunities for disruptive IT innovation and for the displacement of incumbent IT market leaders," the report notes.

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