Bangalore: According to a survey by Gartner, Inc., worldwide IT spending is on pace to total of $3.5 trillion in 2015, a 5.5 percent decline from 2014. Analysts say the reason for this decline is due to the increasing value of U.S. dollar. In constant-currency terms, the market is projected to grow 2.5 percent. In the previous forecast in April, Gartner had predicted IT spending to decline 1.3 percent in U.S. dollars and grow 3.1 percent in constant currency.
Founded in 1979, Gartner, Inc. is the world’s leading IT research and advisory company, dedicated to provide the tech-related insights necessary for its clients to make the right decisions. Researched and delivered quarterly from such entity, The Gartner Worldwide IT Spending Forecast aims to indicate major technology trends across hardware, software, IT and telecom markets. The reports are exploited by Global IT and business executives and help them to base their critical business decisions on proven methodologies rather than relying on trial and error methods.
The recent research results show that the overall IT spending would decrease from 3,711 to 3,507 in 2015 with a negative growth rate of -5.5 percent. While communications services will continue to be the largest IT spending segment in 2015 with spending at nearly $1.5 trillion, this segment is also experiencing the strongest decline among the five IT sectors. Dominance of the mobile phones in the device market will continue, with growth in Apple phones especially in China. But, overall smart phones growth will start to fall and the PC and tablet markets weaken even more. Enterprise software spending is expected to decline 1.2 percent in 2015. According to the analysts of Gartner, many software vendors will try not to raise prices because software as a service (SaaS) is about market share and not earning profits.
“We want to stress that this is not a market crash. Such are the illusions that swings in the value of the U.S. dollar versus other currencies can create,” says John-David Lovelock, Research Vice President at Gartner. “However, there are secondary effects to the rising U.S. dollar. Vendors have to increase the product prices to protect costs and margins of their products, and enterprises and consumers will have to make new purchase decisions in light of the new prices”.