Accelerating momentum for cloud infrastructure adoption should drive demand for IT services, which will rebound this year, Gartner forecasts.
Worldwide IT spending is projected to edge up 0.6%, to $3.54 trillion (constant U.S. dollars) this year from nearly $3.52 trillion in 2015, which was down 5.8% from the year before.
The popularity of tablets and smartphones dragged down PC sales last year. But with prices expected to stay steady and the relatively swift enterprise adoption of Windows 10—average migration time for Windows 10 is 18 months, or 12 months faster than Windows 7—the PC market is poised to pick up in the next few years.
Security spending is expected to exceed $84.3 billion this year, spurred by interest in secure cloud/SaaS, behavioral analytics, algorithmic security, IoT protection, security analytics and intelligence sharing.
Nearly half (48%) of the IT services market growth will be “directly attributable to digital technologies,” as organizations aim to further align business and operating models to the innovation age. This realignment includes business model reinvention, operating model transformation, business process optimization, digitization and digital operations management.
IT services spending is forecast to rebound 3.1% this year to $940 billion from $912 billion in 2015. Last year, services spending dropped 4.5% from the year before.
Spending on software is projected to increase 5.3% to $326 billion this year from $310 billion last year, which was down 1.4% from 2014.
Spending on data center systems is expected to rise 3% this year to $175 billion from $170 billion last year, which saw an 1.8% increase from 2014.
Communications services spending declined to $1.47 trillion in 2015, down 8.3% from 2014. This market is expected to decline another 1.2% this year to $1.45 trillion.
Device spending fell to $653 billion in 2015, down 5.8% from the year before. The device market will decline another 1.9% this year to $641 billion.