Aussie IT spending to crack $76.5 billion in 2014: Gartner

Aussie IT spending to crack $76.5 billion in 2014: Gartner

Gartner: "As market power shifts to the buyer, product pricing is becoming the primary differentiator."

IT spending in Australia is forecast to hit $76.5 billion in 2014 as the global economy shows gradual signs of recovery, according to Gartner.

The forecast is a 2.5 per cent increase on last year and is slightly off the pace of the worldwide spending increase year-on-year.

In the Asia Pacific region, IT spending is forecast to reach US$759 billion, up 4.4 percent from 2013, but slightly lower than last year's growth of 4.7 percent.

Enterprise software is forecast to be the fastest growing category of spending. It reached 6.9 percent last year.

Telecoms services will grow only 1.3 percent in 2014, but it remains by far the largest category of technology spending.

China’s total IT spending is forecast to exceed CNY 2.1 trillion, an increase of 7 percent over 2013, while New Zealand’s total IT spending is forecast to grow 1.7 percent to reach NZ$11.1 billion.

Global IT spending is on pace to reach US$3.8 trillion in 2014, a 3.2 percent increase from last year.

Gartner managing vice president, Richard Gordon, said, worldwide, businesses were shaking off their malaise and returning to spending on IT to support the growth of their business.

"Consumers will be purchasing many new devices in 2014; however, there is a greater substitution toward lower cost and more basic devices than we have seen in prior years," he said.

The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology trends across the hardware, software, IT services and telecom markets.

The devices market (including PCs, ultramobiles, mobile phones and tablets) is forecast to return to growth in 2014, with worldwide spending of $689 billion, a 4.4 percent increase from 2013.

However, in top-line spending, a shift in the product mix continues to be seen in the marketplace.

Demand for highly priced premium phones is slowing, with buyers in mature countries preferring mid-tier premium phones, while those in emerging countries favour low-end Android basic phones.

The number of traditional PC users is contracting to a set of fewer, albeit more engaged, users, according to Gartner.

“In general, consumers are opting to buy premium ultramobiles as notebook replacements and purchasing tablets as additional devices," the report said.

“As market power shifts to the buyer, and key product innovations become ubiquitous, product pricing is becoming the primary differentiator.”

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Tags GartnerRichard GordonGartner managing vice president


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