Australian IT spending to reach $78.1 billion in 2015: Gartner

Worldwide decline in value of IT spending blamed on movement of US dollar

Gartner is forecasting Australian IT spending to grow 2.1 per cent this year, reaching $78.1 billion.

The largest single segment of that will be IT services, set to account for $28.8 billion.

The fastest growing area is software, which will hit $9.4 billion thanks to year-on-year growth of 9.8 per cent, according to the analyst firm.

In the Asia Pacific, Gartner expects spending of US$743 billion (an increase from 2014 of 0.7 per cent, or 4.5 per cent in constant-currency terms).

Worldwide, Gartner is forecasting a 5.5 per cent decline in IT spending to US$3.5 trillion, though in constant-currency terms the analyst firm is expecting growth of 2.5 per cent.

The figure represents a dip on a forecast released by the analyst firm in April, when Gartner said it expected a 1.3 per cent decline (3.1 per cent growth in constant-currency terms).

"We want to stress that this is not a market crash. Such are the illusions that large swings in the value of the US dollar versus other currencies can create," Gartner research vice-president John-David Lovelock said in a statement.

"However, there are secondary effects to the rising US dollar. Vendors do have to raise prices to protect costs and margins of their products, and enterprises and consumers will have to make new purchase decisions in light of the new prices."

Communications services is forecast to comprise the largest segment of spending, reaching US$1.492 trillion. That is followed by IT services (US$914 billion), devices (US$654 billion), enterprise software (US$310 billion), and data centre systems (US$136 billion).

"IT activity is stronger than the growth in spending indicates. Price declines in major markets like communications and IT services, and switching to 'as a service' delivery, mask the increase in activity," Lovelock said.

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