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Gartner Reveals Accelerated Growth in Global IT Spending

by: Sarah Joson

Thursday, July 26, 2012 | Outsourcing News |

Faster Growth in Global IT Spending

In a recent market analysis data collected from over 200 business and technology analysts by research firm Gartner, expenditures on IT products and services worldwide will increase 3% and be valued at $3.6 trillion, which is higher than the initial 2.5% estimate in growth for the sector.   

In line with that, outlay for IT services is anticipated to grow 2.3% and reach $864 billion in 2012. Meanwhile, hardware spending is anticipated to grow 3.4% and reach $420 billion this year.  

There are actually several segments where budget will be allocated this year. Bulk of the entire IT expenditures (46.4% or $1,686 billion) will be for telecommunication services. During 2011, spending for this category was $1663 billion, which only makes sense because most of the IT products and services sought after by the consumers are portable devices that can easily be connected to the internet, other users, and are enabled for various types of apps.

Gartner’s Research Vice-president Richard Gordon said IT providers shouldn’t be complacent with the figures posted by the second quarter as changes are inevitable.

One of the noticeable IT segments nowadays is cloud technology, due to the fact that more and more companies are beginning to realize its benefits. For this year, Gartner predicted that spending on this segment will reach $109 billion, $91 billion more than last year’s figures. The firm added that by 2016, enterprise public cloud services will reach $207 billion.

On the other hand, the most popular type of cloud service is outsourcing where companies are increasingly integrating cloud technology to their system via a service provider, and their data in physical facilities are migrated to the cloud.     

Mr. Gordon added that even if business process as a service (BPaaS) represents the lion’s share in enterprise cloud spending, other segments like software as a service (SaaS), infrastructure as a service (IaaS), and platform as a service (PaaS) are growing rapidly. PaaS will be the least costly, although it is still a vital tool for companies that avail of cloud services. In fact, spending on PaaS will only amount to $1.2 billion. By 2016, it is anticipated to reach $27 billion.

Other noteworthy predictions are the full migration of digital media and data to the cloud by 2016 and the health care market will be adopting the cloud technology wherein it will be worth $5.4 billion come 2017.


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