Gartner: Global IT spending will grow slightly in 2014

Enterprise software spending will drive the growth in spending, while telecom spending is a drag

Global spending on IT and telecom products and services will grow 3.1 percent between 2013 and 2014, compared to just 0.4 percent a year earlier, with enterprise software spending driving much of the growth, according to Gartner projections.

Worldwide spending for IT and telecom will total US$3.8 trillion, with enterprise software spending driving the growth, Gartner said Monday. Enterprise software spending will total $320 billion, growing 6.8 percent in 2014, the research firm said.

In January 2013, Gartner predicted IT spending growth of 4.2 percent for the year, but growth ended up at 0.4 percent.

Businesses will spend money on analytics to make processes geared toward consumers more efficient and improve marketing, said Richard Gordon, Gartner's managing vice president. Enterprise spending in supply chain management will grow by 10.6 percent in 2014, he said in a press release.

Device spending will rise 4.3 percent to $697 billion, and IT services spending will increase 4.5 percent to $963 billion, Gartner predicted. Gartner had projected a 6.3 percent growth in device spending for 2013, but now says there was a decrease of 1.2 percent.

Telecom services will grow just 1.2 percent during the year, to $1.7 trillion, Gartner predicted. While telecom services will see the lowest growth of five categories measured by Gartner, it will still improve compared to 2013, when it dropped 0.5 percent, Gartner said. A year ago, the firm had predicted growth of 2.4 percent in that category.

Gartner's numbers differ from projections released by competitor Forrester Research, which released its IT spending predictions last week. The more optimistic Forrester expects global spending on technology to rise 6.2 percent to $2.2 trillion in 2014, but those numbers don't include telecom services, as Gartner does.

IT spending grew only 1.6 percent in U.S. dollars during 2013, Forrester said. IT spending will grow even faster in 2015, with a 8.1 percent growth rate, Forrester predicted.

Since last quarter, Gartner has lowered its IT spending forecast for 2014 from a 3.6 percent increase to 3.1 percent. Much of that decrease is due to a downward revision in telecom spending, with a growth in mobile-only households, declining voice rates in China and a more frugal usage pattern among European customers contributing to a lower growth rate in telecom services, Gartner said.

Grant Gross covers technology and telecom policy in the U.S. government for The IDG News Service. Follow Grant on Twitter at GrantGross. Grant's email address is grant_gross@idg.com.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesGartnerRichard GordonForrester Researchbusiness managementinvestments

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?