Gartner: Business focus must turn to digital

Worldwide IT spending is forecast to be flat in 2016 ($3.41 trillion), according to Gartner.  Spend in the IT software market is expected to increase 5.8%. This is mainly due to currency fluctuations. Gartner has stated now is the time that businesses must turn to digital and cost optimization efforts to survive.

“The current Gartner Worldwide IT Spending Forecast assumes that the UK would not exit the European Union. With the UK’s exit, there will likely be an erosion in business confidence and price increases. This will impact the UK, Western Europe and worldwide IT spending,”

said John-David Lovelock, research vice-president at Gartner.

With change around the corner from Brexit, staffing may be the immediate issue for many companies. Uncertainty around work status makes the UK less attractive to those looking to take their skills to other countries. Whilst retaining current Non-UK staff will impact UK IT departments.

“2016 marked the start of an amazing dichotomy. The pace of change in IT will never again be as slow as it is now but global IT spending growth is best described as lacklustre,”

said Lovelock. 2016 is the year that business focus turns to digital business, the Internet of Things and even algorithmic business, he added.

“To fund these new initiatives, many businesses are turning to cost optimisation efforts centering around the new digital alternatives to save money, simplify operations and speed time to value. It is precisely this new breadth of alternatives to traditional IT that will fundamentally reshape what is bought, who buys it and how much will be spent,”

Lovelock said.

Gartner Worldwide IT Spending Forecast

The  Worldwide IT Spending Forecast is the leading indicator of technology trends across hardware, software, IT services and telecom markets.  Global business executives use these reports to recognize market opportunities and as a base for their critical business decisions.