Enterprise IT spending reaches $2.68 trillion in 2013
Economic worries will hold back enterprise IT spending next year, Gartner predicts. The analyst firm sees tepid 2.5 percent growth to $2.679 trillion, up from projected $2.603 trillion. "The global economic outlook has deteriorated in 2012, leading to scant overall growth in enterprise IT spending", Kenneth Brant, Gartner research director, says.
But there's a glimmer of sunlight in the economic gloom. "Our third-quarter outlook points to more substantial growth in 2013, if significant fiscal crises are avoided in the US and Europe, and in subsequent years. Most enterprises have already significantly cut discretionary IT spending growth over the past several years and, barring a global economic catastrophe and significant contraction of operations, they have little room to reduce IT spending further over the long run".
While vertical segment growth is projected to be lower single digits everywhere, some will outpace others. Insurance and transportation track for 4 percent growth, followed by 3.5 percent for banking and securities. Content and media services: 3 percent. The sector typically dedicates 5 percent of revenue on a five-year basis to IT spending.
"Several subsectors within CMS are heavily IT-intensive", Brant says. "Professional and IT services firms, communications service providers, software and Internet services, and media companies invest considerably in IT across hardware, software, IT services, internal services and telecommunications. With demands for a secure Internet connected backbone and faster wireless data services, coupled with the pervasiveness of social media and video, these industries will need to continue to invest in IT".
He expects the sector to spend $426 billion next year. That compares to $460 billion for banking and securities and $478 billion for manufacturing and natural resources.
By comparison, public spending is headed downward, 2 percent, to $445 billion.
"Austerity measures and budgetary reductions have affected government spending worldwide as measured by the reconciliation of government budget proposals across the US and Europe" Brant says. But that's a simplification.
"In some respects, IT budgets are being decoupled from the overall operating pressures facing governments", he continues. "At the same time, government organizations recognize that new technology investments may help reduce the cost of service delivery, improve operational efficiency or reduce future expenditure. Consequently, government IT spending intensity is beginning to diverge from traditional operational spending trends".