Global IT spending predicted to hit $3.8 trillion in 2019, says Gartner

Market research firm Gartner has predicted that the worldwide spending on IT will increase by 3.2% on a year-on-year basis, to a total of £2.86 trillion in 2019.

John-David Lovelock, research vice president at Gartner, said: “Despite uncertainty fuelled by recession rumours, Brexit, and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth. However, there are a lot of dynamic changes happening in regards to which segments will be driving growth in the future. Spending is moving from saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and IoT devices. IoT devices, in particular, are starting to pick up the slack from devices. Where the devices segment is saturated, IoT is not.

“IT is no longer just a platform that enables organisations to run their business on. It is becoming the engine that moves the business. As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together.”

In 2019, a growth of 8.5% is predicted in global software spending which will boost the enterprise software market. The market is said to grow another 8.2% in 2020 to total £354 billion. Organisations are likely to increase spending on enterprise application software in 2019, with more of the budget shifting to software as a service (SaaS).

A survey on AI implementation was conducted by Gartner earlier this month where it found one in three (37%) of the enterprises surveyed were deploying AI – a 270% rise compared to previous four years. This study, in which more than 3,000 CIOs from 89 countries were surveyed, found that though organisations across all sectors analysed use AI in a number of applications, there is an acute shortage of talent.

Another recent study found that nearly nine in 10 organisations were classified as having ‘low’ BI and analytics maturity. The findings from the study argue that organisations are either ‘basic’ or ‘opportunistic’ in their processes, which usually means that companies will have BI capabilities predominantly based around spreadsheet analysis and personal data extracts. 

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