IT spending to rebound in 2017, led by software, services, says Gartner

Brexit turned a flat IT spending year into one with a modest loss, but 2017 is looking more solid, according to Gartner.
Written by Larry Dignan, Contributor

Global information technology spending is expected to hit $3.5 trillion in 2017, up 2.9 percent from 2016, according to Gartner. The rebound from the 0.3 percent decline in IT spending in 2016 is driven by software and services.

The growth estimates for 2016 IT spending were whacked by Brexit. The referendum vote on the exit of the UK from the EU June 23 caused IT spending to go from modest growth to negative.

Among the key takeaways from Gartner, which outlined its forecast at its Symposium/ITXpo in Orlando.

  • Software spending will be up 6 percent in 2016 and accelerate to growth of 7.2 percent in 2017.
  • Data center systems will be up 1.3 percent in 2016.
  • IT services will post growth of 3.9 percent in 2016 and 4.8 percent in 2017.
  • Devices spending has been whacked, down 7.5 percent in 2016. Spending on devices will claw back to flat growth in 2017.

Brexit will have a few impacts on IT spending. First, there's uncertainty about the UK. In addition, the valuation of British pound is shifting IT spending. Countries such as the Netherlands and Ireland are likely to increase IT spending.

On the bright side, Gartner analysts don't expect much of a IT spending shift based on the US presidential election.

More from Gartner Symposium/ITXpo:

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