Dive Brief
- Worldwide IT spending will increase in 2017, but not as much as originally projected due to worldwide "political uncertainty" that’s causing enterprises to curtail IT investments, according to Gartner, Inc.
- Gartner originally projected growth of 3% in 2017, but has now revised that to 2.7%. "Some of the political uncertainty in global markets has fostered a wait-and-see approach causing many enterprises to forestall IT investments," said John-David Lovelock, research vice president at Gartner, in a press release.
- Gartner now forecasts worldwide IT spending will total $3.5 trillion in 2017.
Dive Insight:
Not surprisingly, spending on devices is projected to remain flat in 2017, while stronger growth is expected in the enterprise IT services market (forecast to grow 4.2%) as businesses continue to invest in cloud and digital transformation initiatives.
But Gartner says caution in the market means growth will happen slower than previously expected. Some of the caution is likely associated with concerns about what effect President-elect Donald Trump could have on the world economy and trade.
Technology leaders have already voiced concerns that Trump could stifle innovation. In July, 300 technology sector leaders sent an open letter to express their lack of support for Donald Trump's presidential campaign, saying Trump would be a "disaster for innovation."
In December, Forrester also reworked its 2017 U.S. tech market projections after Trump’s surprise presidential victory. Forrester predicted the tech sector under Trump will grow 4.3%, compared to the expected 5.1% jump it predicted under a Clinton administration.
