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Global IT spending to reach $3.8 trillion in 2015, says Gartner

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15th Jan 2015
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Global IT spending will grow by 2.4% in 2015, according to Gartner’s latest market forecast.

The analyst firm’s projection, which tracks IT spending across devices, data centre, telecoms, IT and enterprise software, expects the market to grow to $3.8 trillion across the coming 12 months, although the forecast has been lowered from earlier predictions in the year that expected growth of 3.9%.

"The change in forecast is less dramatic than it might at first seem,” said John-David Lovelock, research vice president at Gartner. “The rising US dollar is chiefly responsible for the change — in constant currency terms the downward revision is only 0.1%.

"Stripping out the impact of exchange rate movements, the corresponding constant-currency growth figure is 3.7%, which compares with 3.8%in the previous quarter's forecast."

One key component in the outlook is the bludgeoning enterprise software market, where spending is expected to increase 5.5% to $335 billion this year.

Gartner expects a highly competitive 12 months in enterprise software, with “more price erosion and vendor consolidation is expected in 2015 because of fierce competition between cloud and on-premises software provider”.

The analyst firm also cites the CRM market as a key battleground, with current forecasts for the global CRM software market to deliver $23 billion in sales for 2014. 2015 is expected to be even fiercer in various CRM sectors thanks to the growing demand for sales force automation tools, which are expected to decline by 25% over the coming 3 years as competition increases.

Sales force automation tools are top of CRM buyers’ wish list for 2015, according to recent analysis from CRM software consultancy Software Advice, which found that the chief requirement of 88% of buyers was to obtain a sales force automation tool, followed by marketing automation tools (36%) and customer support tools (10%).

Gartner’s forecast correlates with fellow analyst firm Forrester’s own predictions for the tech sector in 2015, which predicts spending on “technologies that focus on the end customer”, as set to grow by 5.3% in 2015 and 5.9% in 2016.

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