Financial Operations
 

Aug 7, 2014

IT spending forecast to increase worldwide

U.S. – Recent volatility will gradually give way to a more positive outlook for IT spending in the second half of 2014, says the International Data Corporation (IDC) ‘Worldwide Black Book’. With the U.S. and other mature economies mostly heading in the right direction and a significant commercial PC refresh cycle already underway, improvements in business confidence are set to drive a moderate infrastructure upgrade cycle over the next 12 to 18 months, while investments in software and services will continue to accelerate.

Worldwide IT spending is now forecast to increase by 4.5 per cent in 2014 at constant currency, or 4.1 per cent in U.S. dollars. A significant proportion of this growth is still being driven by smartphones – IT spending excluding mobile phones will increase by just 3.1 per cent this year in constant currency (2.8 per cent in U.S. dollars). Aside from smartphones, the strongest growth will come from software, including rapidly expanding markets such as data analytics, data management, and collaborative applications including enterprise social networks. The 3rd platform pillars of Big Data, Social, Mobile, and Cloud will continue to drive virtually all of the growth in IT spending, while spending on 2nd platform technologies will remain effectively flat.

Meanwhile, although some emerging markets remain constrained by macroeconomic and geopolitical wild cards, there is now significant pent-up demand for IT investment that will drive stronger growth next year in markets including India, Brazil, and Russia. Pent-up demand has already driven a significant rebound in both consumer and enterprise IT spending in China this year, as confidence stabilizes. While mature economies are still driving the upside in 2014, emerging markets will once again dominate in 2015.

 

 

 

 

 

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