Worldwide IT spending slows to $3.7T

Global spending on IT is on track to reach $3.7 trillion in 2014, a 2.1 percent increase from last year.

That growth, however, is slower than in 2013, primarily because of a reduction in growth expectations for devices, data center systems and, to some extent, IT services.

"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," said Richard Gordon, managing VP, Gartner. "However, 2015 through 2018 will see a return to 'normal' spending growth levels as pricing and purchasing styles reach a new equilibrium. IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalization."

Slower spending contradicts statements made by retail IT executives earlier this year, when the emphasis on omnichannel, mobile and data security seemed to be investment priorities. But a closer look reveals that spending is in line with retailers' new priorities.

Spending on data center systems and telecom services is expect to remain flat for 2014, but funds allocated toward enterprise software and IT services should rise 6.9 percent and 3.6 percent respectively, according to Gartner.

In April, a report from Avanade revealed that technology budgets and decision-making are migrating away from IT departments, while IT is mostly taking on new roles in the enterprise as service brokers. In this model, IT staff members consult with departments across multiple companies to better coordinate IT with enterprise objectives.

For more:
-See this Gartner report

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