Software surge to see IT spending soar

IDC claims global IT spending will surpass $2.8tn in 2019

Software spending is set to be the fastest-growing technology segment in the coming three years, according to IDC, which claims global IT spending will surpass the $2.8tn (£1.9tn) mark in 2019.

The analyst said that the global figure - which is 14 per cent up compared with 2015 - will be driven by software spending, which will enjoy a 6.7 per cent compound annual growth rate. IDC pointed to network software, collaborative applications, data access, and analytics and delivery applications as the key drivers in the software spending surge.

Hardware and IT services spending will grow "at rates slower than the overall market", IDC said.

Although the market watcher predicts double-digit growth for the global IT market, it said companies in the space will be at the mercy of global economics and a number of so-called "wild cards".

"With the global economy entering a new and uncertain phase, IT spending will be heavily influenced by economic cycles and wild cards over the next five years," said Stephen Minton, vice president for customer insights at IDC.

"Recent sluggishness in China has caused severe disruption for emerging markets, while the collapse in oil prices continues to challenge energy producers and stock market volatility poses new questions for investment firms."

But he added that IT firms could benefit from the uncertainty.

"In many industries, business leaders will turn to IT solutions, including data analytics and infrastructure optimisation, to help them navigate the stormy economic waters," he said. "For IT vendors, the need is greater than ever for a detailed approach to targeting pockets of growth and opportunity amid this volatile economy."