Gartner Sees IT Spending Edging Up in 2016

By Dennis McCafferty

Worldwide IT spending took a significant dip in 2015 but will increase slightly for the year ahead, according to new research from Gartner. Accelerating momentum for cloud infrastructure adoption, for example, should drive stronger demand for IT services. The global software market—which also declined in 2015—is expected to rebound. Not so for devices, as enthusiasm is dwindling for more expensive products in regions such as Japan, the Middle East and North Africa. Meanwhile, telecommunications services will continue to take a hit, due mainly to the abolition of roaming charges in Europe and parts of North America, Gartner reports. Thanks to increasing investments in data center systems and other tech categories, however, IT spending prospects in general look encouraging. "The rising U.S. dollar is the villain behind 2015 results," said John-David Lovelock, research vice president at Gartner. "U.S. multinationals' revenue faced currency headwinds in 2015. However, in 2016 those headwinds go away and they can expect [additional growth]."

This article was originally published on 2016-01-28