Global IT research firm Gartner projected that worldwide IT spending is projected to total $3.5 trillion in 2017, a 2.4 percent increase from 2016 and this growth rate is up from the previous quarter's forecast of 1.4 percent, due to the US dollar decline against many foreign currencies.
"Digital business is having a profound effect on the way business is done and how it is supported," said John-David Lovelock, vice president and distinguished analyst at Gartner.
He said, "The impact of digital business is giving rise to new categories; for example, the convergence of "software plus services plus intellectual property." These next-generation offerings are fueled by business and technology platforms that will be the driver for new categories of spending. Industry-specific disruptive technologies include the Internet of Things (IoT) in manufacturing, blockchain in financial services (and other industries), and smart machines in retail. The focus is on how technology is disrupting and enabling business."
The report also expects that enterprise software market is to grow 7.6 percent in 2017, up from 5.3 percent growth in 2016. As software applications allow more organizations to derive revenue from digital business channels, there will be a stronger need to automate and release new applications and functionality.
Gartner pointed out that, worldwide spending on devices (PCs, tablets, ultramobile and mobile phones) is projected to grow 3.8 percent in 2017, to reach $654 billion. This is up from the previous quarter's forecast of 1.7 percent.
Mobile phone growth will be driven by increased average selling prices (ASPs) for premium phones in mature markets due to the 10th anniversary of the iPhone and the increased mix of basic phones over utility phones. However, the tablet market continues to decline, as replacement cycles remain extended.