Gartner: Global IT spend to plummet in 2015

Price erosion, fluctuating currencies and competitive threats are hitting revenue growth

Worldwide IT spending is set to hit $3.5tn (£2.2tn) in 2015, down 5.5 per cent from last year, according to analyst Gartner.

The figure differs significantly from its April forecast, which had spending set to grow 3.1 per cent in constant currency.

Enterprise software is the most promising category, with spend set to drop just 1.2 per cent in 2015.

The biggest drop – 7.2 per cent – is in the communications services sector, and not far behind is the devices market with a predicted 5.7 per cent decline.

Gartner said in the device market, mobile phones continue to lead the segment with growth in Apple phones, particularly in China, keeping overall spending consistent. But in general, smartphone unit growth will begin to flatten, and the analyst said the PC and tablet markets will "continue to weaken".

Compounded by the expected 10 per cent increase in average PC pricing, and excessive PC inventory levels in western Europe particularly, the outlook is not so rosy, and will also delay Windows 10 inventory in H2 2015, the analyst said.

Worryingly for the channel, IT services revenue is forecast to decline 4.3 per cent, compared with a 1.9 increase in 2014, with datacentre systems also declining 3.8 per cent.

However, Gartner said there was no cause for panic.

John-David Lovelock, research vice president at Gartner, said: “We want to stress that this is not a market crash. Such are the illusions that large swings in the value of the US dollar versus other currencies can create.

"However, there are secondary effects to the rising US dollar. Vendors have to raise prices to protect costs and margins of their products; organisations and consumers will have to make new purchase decisions in light of the new prices."

But despite the negative figures, it is not all bad, he stressed.

"IT activity is stronger than the growth in spending indicates. Price declines in major markets such as communications and IT services, and switching to as-a-service delivery, mask the increase in activity," Lovelock added.