Global IT, telecom spending to hit $4 trillion, but economic concerns loom

IDC is projecting 2018 IT and telecom spending growth of 3.7 percent, but tariffs, interest rates and China loom.

Top IT jobs and hiring trends for 2018 listed in Tech Pro Research survey

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Global IT and telecom spending will grow 3.7 percent to $4 trillion in 2018, but economic concerns could derail growth in 2019, according to IDC.

In 2017, IT and telecom spending grew at a 4.2 percent clip.

IDC said economic issues like tariffs, rising interest rates and growth in China could cut IT spending to less than 3 percent. Indeed, Daimler issued a profit warning based on tariffs on its U.S. made cars.

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By 2022, annual IT spending should hit $4.5 trillion with software and services, cloud, and digital transformation seeing the most demand. Infrastructure spending has stabilized largely due to cloud spending.

IDC said there's a likelihood for a mild U.S. recession by 2020, but spending on cost saving software and cloud should provide a buffer for IT spending.

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