Companies are set to spend a lot more on IT in 2018

2018’s global IT spend is forecast to experience nearly double the growth seen in 2017, Gartner revealed in its latest report.

The intelligence firm suggested that IT spend is set to top US$3.7-trillion this year, an increase of 6.2% over last. That also marks the highest annual growth rate Gartner has forecast since 2007.

2017’s growth figure fell just short of 4%.

But the increase in spend is seemingly pegged to currency, and not an increased demand for IT solutions.

“Although global IT spending is forecast to grow 6.2 per cent this year, the declining US dollar has caused currency tailwinds, which are the main reason for this strong growth,” suggests John-David Lovelock, Gartner’s VP of research.

“Through 2018 and 2019, the US dollar is expected to trend stronger while enduring tremendous volatility due to the uncertain political environment, the North American Free Trade Agreement renegotiation and the potential for trade wars.”

With that said, 2019’s outlook seems a lot less exciting.

A much smaller 2.8% growth spurt is forecast for 2019, with expenditure on communications services, devices and data centre systems slowing significantly.

And speaking of devices, expenditure on laptops, mobile phones and PCs is set to top US$706-billion in 2018.

Lovelock does suggest that as we reach the end of the decade “total end-user spending and unit shipments are expected to be lower compared with previous forecasts, as demand for ultramobile premium devices, ultramobile utility devices and basic phones is expected to be slow.”

Device growth is forecast to hit just 1.3% in 2019, topping a total spend figure of US$715-billion in the process.

Enterprise software however, after seeing a forecast growth of 11.1% in 2018, is set to continue its lofty growth rate in 2019.

Feature image: Tirza van Dijk via Unsplash