EMEA IT spending to rise 5% to USD 1 tln in 2018 - study

Wednesday 8 November 2017 | 11:21 CET | News
IT spending in Europe, the Middle East and Africa (EMEA) is set to exceed USD 1 trillion in 2018, a 4.9 percent year on year increase from estimated spending of USD 974 billion in 2017, according to the latest report from Gartner. The strength of the 2018 forecast as well as the 2017 weakness are mainly based on currency effects, with the UK – EMEA’s largest IT market – declining 3.1 percent in 2017 due to weak sterling and political uncertainty since Brexit. Other major IT markets in EMEA grew steadily thanks to the rapid appreciation of the Euro against the US dollar, resulting in overall year-on-year growth of 1.6 percent in 2017, said Gartner.

The report added that strong demand in the enterprise software and IT services categories across EMEA hint at significant shifts in IT spending patterns, with businesses broadly reducing spending on owning IT hardware and increasing spending on consuming IT as-a-service. As a result, the only category predicted to show enterprise spending growth in 2017 is the enterprise software market at 3.2 percent.

All categories of enterprise IT spending are expected to return to growth in 2018, but only IT services and software will grow strongly at 4 percent and 7.6 percent, respectively. Enterprise spending on devices and communications services will continue to fall behind in 2018, growing at 2 percent or lower, thus failing to recoup the losses of 2017, added the report.

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