Recently released data from Gartner suggest that business spending on IT hardware, software and services will shoot up to an estimated $3.7 trillion. This figure is 4.2% up as compared to 2012. Notably, this rise is considerably higher than the 1.2 percent increase that was observed in 2012. Also, the growth in spending is likely to continue well into 2014, with expected sales of $3.8 trillion.
Gartner views the strengthening foreign currencies against the American dollar is a prime reason behind these findings. Also, the bright outlook is also a result of the recuperating business sentiment on the global scenario, especially in terms of IT spending which was weighted down for an appreciably long period due to persistent economic insecurities of companies.
Richard Gordon, managing vice president at Gartner, told V3,“There is still some time before the real booms are seen, but the nagging uncertainties that made the market passive are fading away, even more so because US elections are over, and the iffy Eurozone situation is not alarming in the short run. Firms will not go crazy for IT, but will certainly invest in key areas like enterprise management software.”
Store management and customer relationship management software are all set for notable growth in 2013, and data integration and sophisticated data management tools are predicted to hit the growth track in 2014. Gordon also remarked that business firms, in their quest to drive up efficiency without investing huge capital upfront, will drive software sales.
“Companies acknowledge that IT is an enabler for effective long run business strategy and tools like CRM systems let them understand their customers better. Costs are not inhibiting the intentions of companies to access and implement technology as cloud computing has enabled inexpensive access to sophisticated IT tools, thus mitigating capital risks and hence transformed into an operational expense model.”
Quite noticeably, Gartner reports that although 2013 is likely to be a growth year, there will be times in the near future when the preference for low cost tablets over expensive personal computers will pull the hardware sales and figures down.