The days of go-go, double-digit growth for tech are long gone and do not appear to be on the way back anytime soon. Even though businesses are moving to the cloud and adopting new technology to stay competitive, global IT spending will be more or less flat this year and growth will remain sluggish through 2020, according to Gartner.
The market research firm is forecasting worldwide IT spending to total $3.49 trillion this year, a 0.5 percent decline from 2015. That’s down from a forecast of 0.5 percent growth the company made last quarter. The change in the forecast is mainly the result of the dollar’s growing strength against other currencies.
In constant currency terms, taking out the effects of the rising dollar, IT spending will rise 1.6 percent this year, noted John-David Lovelock, research vice president at Gartner. That’s a slowdown from 2015, when global IT spending was up 2.4 percent in constant dollars over 2014, he said.