Despite the economic uncertainty surrounding Brexit and the US-China trade tension, IT spending is expected to grow, according to a new report by marketing research firm Gartner.
According to Gartner, Worldwide IT spending is projected to grow to 3.2% to $3.76tn (£2.86tn) in 2019.
Gartner says all tech sectors are expected to see growth in spending, but enterprise software is forecast to experience the highest growth and is expected to grow 8.5% to $431bn (£327bn) in 2019.
The report adds that it will grow another 8.2% in 2020 to total $466bn (£353bn).
Organisations are expected to increase spending on application software in 2019, with most of the budget switching to a cloud-based delivery model of Software-as-a-Service (SaaS).
Gartner also projects spending on IT services to increase by 4.7% to $1.03tn (783bn); data centre systems by 4.2% to $210bn (£159bn); devices by 1.6% to $679bn (£516bn); and comms services by 1.3% to $1.417tn (£1.064tn).
John-David Lovelock, Research Vice President at Gartner, said in a statement that Gartner also expects budgets to move away from “saturated segments such as mobile phones, PCs and on-premises data centre infrastructure to cloud services and Internet of Things (IoT) devices.”
“IoT devices, in particular, are starting to pick up the slack from devices,” Lovelock said. “Where the devices segment is saturated, IoT is not.”
That expansion comes amidst a broader shift that is seeing IT become more and more central to a business’s success.
“IT is no longer just a platform that enables organisations to run their business,” said John Lovelock, in a research note. “It is becoming the engine that moves the business.”
He said Gartner sees IT becoming “the thing that binds the business together”.
However, while organisations are looking to IT technology to drive their business, they are failing to address concerns such as skills shortages in areas such as machine learning, artificial intelligence, API and services platform design and data science, according to Lovelock.
“Nearly half of the IT workforce is in urgent need of developing skills or competencies to support their digital business initiatives,” he said.