March 28 Industry research firm Gartner trimmed
its tech spending outlook for 2013 because concerns about the
U.S. budget and Cyprus' debt burden are expected to temporarily
weigh on financial plans.
It now expects spending on information technology ranging
from smartphones to data storage to grow 4.1 percent or $3.8
trillion this year instead of the previously forecast 4.2
percent, Gartner said on Thursday.
By comparison in 2012, IT spending rose 2.1 percent.
The research firm said it had changed its forecast because
federal budget cuts in the United States and Cyprus' debt issues
had "netted out any benefit" from positive developments such as
the U.S. avoiding the so-called fiscal cliff of tax hikes and
deep spending reductions at the end of last year.
However, Gartner said, the concerns are expected to be
"The market is already in a pessimistic state," said Gartner
analyst John Lovelock. "This hasn't changed the dial much but
there will likely be a pause in some spending."
That could mean delaying the purchase of new mobile devices
for example but it would not impact strategic initiatives such
multi-year contracts or basic functions such as software and
In enterprise software Gartner expects spending to reach
$297 billion, up 6.4 percent this year compared with 3.5 percent
growth in 2012.
"There's a big jump in certain base functionalities around
data," Lovelock said.
IT services, which can include outsourcing, maintenance or
consulting, will see growth of 4.5 percent to $918 million
versus 1.5 percent in 2012.
Worldwide devices spending -- including PCs, tablets, mobile
phones and printers -- is forecast to reach $718 billion in
2013, up 7.9 percent from 2012
"Despite flat spending on PCs and a modest decline in
spending on printers, a short-term boost to spending on premium
mobile phones has driven an upward revision in the devices
sector growth for 2013 from Gartner's previous forecast of 6.3
percent," the firm said.
(Reporting By Nicola Leske; editing by Andrew Hay)