Gartner reviews low IT spending forecast for 2019 – Business

Gartner reviews low IT spending forecast for 2019 - Business

Between January and December of this year IT spending will grow 0.6%, according to Gartner forecasts. At the beginning of the year, the consultancy believed that growth would be 1.1%.

Justifying the adjustment of the forecast are several factors, highlighting the instability provoked by the commercial wars between the United States and countries like China, Brexit and rumors of recession.

However, Gartner does not expect these constraints to prevent the directly involved regions from seeing IT spending rise this year. The forecast for the United States and China, for example, is above the global estimate, being respectively 3.7% and 2.8%.

By areas, enterprise software is the fastest growing segment of spending this year, about 9% to $ 419 billion, thanks to the transition from on-premise to cloud-based environments.

The biggest drops go to the areas of devices and data centers, which decline 4.3% and 3.5%. The latter is also explained by the rise of the cloud, which, after a first phase of investment, more focused on applications and outsourcing of business processes, is being affirmed in other domains, such as productivity solutions, content services and collaboration.

While considering that "a slowing global economy is not the most likely scenario for 2019 or 2020, the risk is high enough to advise preparation and planning," notes John-David Lovelock.

Gartner's vice president for research, leaves a warning to companies, which in the perspective of the consultant "should start thinking about combinations of products and operating models that optimize their operations in a scenario of economic slowdown," says in a press release.

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