GARTNER’S IT FORECAST
Information Technology Research and Advisory Company Released Local and International IT Spending Forecast
According to the last Gartner Worldwide IT Spending Forecast, the total IT spending in Malaysia is said to grow 11 percent to RM67.9 billion in 2014. However, IT spending in the Asia Pacific region is predicted to reach US$746 billion in 2014, up three percent from 2013, but 1.4 percent lower than the previous forecast of 4.4 percent.
Gartner’s Managing Vice President, Richard Gordon said that price pressure based on increased competition, lack of product differentiation, and the increased availability of viable alternatives solutions has had a dampening effect on the short-term IT spending outlook.
On a global scale, the report said that the worldwide IT spending is on pace to total US$3.7 trillion in 2014, which is a 2.1 percent increase from last year.
“However, 2015 through 2018 will see the return to ‘normal’ spending growth levels as pricing and purchasing styles reach a new equilibrium. IT is entering its third phase of development, moving fast from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitization,” added Gordon.
The report further speculated that the device market will grow in 2014 reaching US$685 billion, a 1.2 percent increase from 2013. This is credited to the high penetration of tablets in the U.S., which is at 50 percent, but with high-end tablets on the decline, in favor of lower-priced utility tablets.
Richard Gordon, Managing Vice President at Gartner.