Global IT spending likely to grow 1.4% to $3.5 trillion in 2017: Gartner

Highlights:

1. The global IT spending is projected to grow 1.4% to $3.5 trillion in 2017 on account of rise in US dollar

2. The worldwide IT spending growth is predicted to grow 2.9% to $3.6 trillion in 2018 

3. The global spending on devices like PCs, tablets, ultramobiles and mobile phones is forecast to grow 1.7% to $645 billion in 2017

4.The IT services market is projected to grow 2.3% in 2017 as compared to 3.6% in 2016

Global IT spending is projected to grow 1.4% to $3.5 trillion in 2017 on account of rise in US dollar, according to information technology research and advisory company Gartner. 

"The strong US dollar has cut $67 billion out of our 2017 IT spending forecast," Gartner's research vice president John-David Lovelock, said in a press release on Monday. 

The overall worldwide IT spending growth rose 0.4% to $3.4 trillion in 2016.

Gartner Market Databook Q1 2017:

According to Gartner, the American currency woes is likely to impact the earnings of the US-based multinational IT companies in the present year.

"We expect these currency headwinds to be a drag on earnings of US-based multinational IT vendors through 2017," he said. 

The research firm has further projected the global IT spending to grow 2.9% to $3.6 trillion in 2018.

ALSO READ: Global IT spending forecast to grow by 2.7% in 2017: Gartner

It has predicted the data center system segment to grow 0.3% to $171 billion in 2017 from the negative growth of 0.1% to $171 billion in 2016. It has said that the segment is experiencing a slowdown in the server market. 

Gartner's Worldwide IT Spending Forecast (Billions of US Dollars):

"We are seeing a shift in who is buying servers and who they are buying them from," Lovelock said. 

"Enterprises are moving away from buying servers from the traditional vendors and instead renting server power in the cloud from companies such as Amazon, Google and Microsoft. This has created a reduction in spending on servers which is impacting the overall data center system segment," Lovelock further added. 

Moreover, on account of rise in mobile phone sales and marginal improvements in sales of printers, PCs and tablets, the global spending on devices like personal computers (PCs), tablets, ultramobiles and mobile phones is forecast to grow 1.7% to $645 billion in 2017 as compared to negative growth of 2.6% to $634 billion in 2016. 

"Mobile phone growth in 2017 will be driven by increased average selling prices (ASPs) for phones in emerging Asia/Pacific and China, together with iPhone replacements and the 10th anniversary of the iPhone," cited Gartner in a statement. 

The tablet market continues to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast, it added.

The worldwide IT services market is projected to grow 2.3% to $917 billion in 2017 as compared to 3.6% to $897 billion growth in 2016. 

 "The modest changes to the IT services forecast this quarter can be characterised as adjustments to particular geographies as a result of potential changes of direction anticipated regarding US policy — both foreign and domestic," Gartner said. 

The business-friendly policies of the new US administration are expected to have a slightly positive impact on the US implementation service market as the US government is expected to significantly increase its infrastructure spending during the next few years, it added.

ALSO READ: IT spending in India to reach $72 billion in 2017: Report