Gartner: Brexit Will Hurt IT Spending Worldwide

...

Is your network an M&M? It's hard on the outside, soft on the inside? If so, it's time for you to

Gartner's updated IT spending forecast for 2016 is slightly improved, but the research firm warned that it doesn't account for the recent UK vote to leave the European Union. The Brexit vote will dampen IT spending worldwide.

Global IT spending is likely to fall this year thanks to last month's Brexit vote in the United Kingdom to leave to European Union.

That's according to Gartner, which issued an improved IT spending forecast for 2016 of $3.41 trillion, but warned that the numbers will likely change for the worse due to Brexit.

"The current Gartner Worldwide IT Spending Forecast assumes that the U.K. would not exit the European Union. With the U.K.'s exit, there will likely be an erosion in business confidence and price increases which will impact U.K, Western Europe, and worldwide IT spending," John-David Lovelock, research vice president at Gartner, in a prepared July 7 statement.

[How will Brexit affect IT spending? Read Brexit And Tech: What Lies Ahead.]

Gartner noted  that the "leave" vote will quickly affect IT spending in the UK and in Europe. The most immediate issue will be with staffing due to the long-term uncertainty in work status that will make the UK less attractive to new foreign workers.

It will also likely become more difficult to retain current non-UK staff members.  

Beyond the immediate Brexit impact, Gartner said that 2016 marks a turning point for IT and IT spending.

2016 marked the start of an amazing dichotomy. The pace of change in IT will never again be as slow as it is now, but global IT spending growth is best described as lackluster. 2016 is the year that business focus turns to digital business, the Internet of Things, and even algorithmic business. To fund these new initiatives, many businesses are turning to cost optimization efforts centering around the new digital alternatives (for example, SaaS instead of software licenses, voice over LTE instead of cellular, and digital personal assistants instead of people) to save money, simplify operations, and speed time to value. It is precisely this new breadth of alternatives to traditional IT that will fundamentally reshape what is bought, who buys it, and how much will be spent.

Areas of IT spending that are expected to grow in 2016 include Data Center Systems at 2%, Software at 5.8%, and IT Services at 3.7%. Areas that are forecast to decline this year are Devices at 5.3% and Communications Services at 1.4%.

Gartner said this new forecast represents a slight improvement over the forecast it issued in the most recent quarter. The previous forecast called for a decline of 0.5% in IT spending. Gartner attributed the slight improvement to currency fluctuations. 

Categories
APPLICATIONS
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    EFF Sues DoJ Over Secret Data Decryption Requests

    The EFF filed an appeal in January, claiming that the department had not conducted an adequate search for the requested documents and that it improperly withheld documents found during the search.The EFF views the government's response to its information request as purposefully narrow, said Aaron Mackey, the Frank Stanton Legal Fellow at the foundation.
  • 5300c769af79e

    Hasselblad Moto Mod Spotted Ahead of Possible IFA Unveiling

    The Hasselblad Moto Mod, a camera module that we all anticipated would launch alongside the Moto Z and Moto Z Force, but didn’t, has been spotted in promotional material ahead of a possible unveiling at next week’s IFA in Berlin.According to the material, this upcoming Moto Mod will feature 10x optical zoom, Xenon flash, a RAW shooting option, and quite a bit more.
  • 5300c769af79e

    What Happened at Google I/O 2017? (Updating)

    Everything from Android to VR and Google Assistant to Android Auto will likely get touched on at some point and we are in town to bring it to you.For the next few days, we’ll continue to update this post with the biggest happenings.
  • 5300c769af79e

    Belkin Wemo Mini Smart Plug

    The newest addition to Belkin's family of smart home devices, the Wemo Mini Smart Plug ($34.4 inches (HWD), the Mini Smart Plug isn't all that mini.