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Growth in tech spend to slow

Calcutta, July 1: Global IT spending is likely to grow at a slower pace of 2.1 per cent and may touch $3.7 trillion in 2014.

The slower outlook, compared with an earlier projection of 3.2 per cent, can be attributed to a reduction in growth expectations for devices, data centre systems and IT services, according to research firm Gartner.

The devices market, comprising personal computers, ultramobiles, mobile phones, tablets and printers, is expected to touch $685 million in 2014, a 1.2 per cent increase over 2013. However, growth will be lower compared to what was predicted in the previous quarter.

The muted outlook is primarily because of an expected lower prices in mobile phones and tablets.

“Price pressure based on increased competition, lack of product differentiation and the increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook.

“However, 2015 through 2018 will see a return to normal spending growth levels as pricing and purchasing styles reach a new equilibrium,” said Richard Gordon, managing vice-president of Gartner.

Spending on data centre systems is projected to reach $140 billion in 2014, growing 0.4 per cent over 2013.

IT services could total $967 billion this year, up 3.8 per cent. Telecom services spending is expected to grow 0.7 per cent to $1,635 trillion. Voice average revenue per user may decline by about 10 per cent annually through 2018.

 
 
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