According to a research firm Gartner, Global IT Worldwide IT spending is projected to total $3.5 trillion in 2017, a 1.4 percent increase from 2016.
However, the growth rate is lower than the previous quarter's estimate of 2.7 percent partly because of the rising US dollar.
"The strong US dollar has cut $67 billion out of our 2017 IT spending forecast. We expect these currency headwinds to be a drag on earnings of US-based multinational IT vendors through 2017," Gartner Research vice-president John-David Lovelock. said.
The data center system segment is expected to grow 0.3 percent in 2017. While spending on enterprise software is pegged to touch $351 billion (up 5.5 percent).
Spending on devices and IT services is forecast to grow by 1.7 per cent and 2.3 per cent to $645 billion and $917 billion, respectively this year.
"The modest changes to the IT services forecast this quarter can be characterized as adjustments to particular geographies as a result of potential changes of direction anticipated regarding US policy -- both foreign and domestic," Gartner said.
The reports also said that driven by strength in mobile-phone sales and smaller improvements in sales of printers, PCs, and tablets, worldwide spending on devices (PCs, tablets, ultramobile and mobile phones) is projected to grow 1.7 percent in 2017, to reach $645 billion.
Mobile phone growth in 2017 will be driven by increased average selling prices (ASPs) for phones in emerging Asia/Pacific and China, together with iPhone replacements and the 10th anniversary of the iPhone.
Although, the tablet market continues to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast.
Communications services, which comprises the largest chunk of the IT spending, is expected to see a marginal decline to $1.3 trillion at the end of 2017.