According to Gartner Inc., as the global market looks to ride out the impact of Brexit, total IT spending in Australia is expected to increase by 2.8 percent year-on-year to reach almost $85 billion in 2017.
The company published a report release saying that a bulk of spending is starting to shift towards software. Meanwhile, IT services spending is on pace to increase 4.1 percent in 2017 to reach $98.8 billion.
Speaking at the Gartner Symposium/ ITxpo held on the Gold Coast this past week, Peter Sondergaard, senior vice president and global head of Research at Gartner said that the company is expecting organizations in the Asia-Pacific region to shift their investment focus towards software.
Sondergaard stated that the battle for ownership of digital platforms has begun. Chief Information Officers (CIOs) must collaborate with their business counterparts to integrate digital platform development into their technology and business strategic planning. CIO’s will participate in the building of a new digital platform with intelligence at the center, Sondergaard said. This platform will enable ecosystems, connecting businesses and collapsing industries. It will change society itself, and the way people live. He further added,
The good news is that there’s incredible opportunities for those companies that innovate, lead, and ultimately succeed in the creation of new digital platforms that meet their customer’s needs better than their competitors. The bad news for those hearing about this seismic shift for the first time is, basically, you’re already a long way behind.
Communication services is estimated represent a 4.1 percent increase over 2016, with an approximated $365 billion figure. $211 billion is expected to be spent on devices, while IT services will see a 6 percent spending increase to $98 billion.
Gartner’s latest forecast points to a recovery in global IT spending, which dipped 0.3 percent in 2016, mainly because of the economic uncertainty caused by UK’s decision to leave the European Union. The referendum vote on the exit of the UK from the EU on June 23 caused global IT spending to go from modest growth to negative.
Gartner analysts are discussing the key IT and business issues that are driving the evolution of digital business this week during the Gartner Symposium/ ITxpo. There has been speculation among attendees regarding the impact of the UK’s exit from the European Union and the upcoming U.S. presidential election.
Gartner Symposium/ITxpo is the world’s most largest gathering of CIOs and senior IT leaders, uniting a global community of CIOs to help them lead the next generation of IT and achieve business outcomes. More than 23,000 CIOs, senior business and IT leaders worldwide gathered at this years event. An information technology research and advisory company, Gartner Inc., delivers technology-related insight that is necessary for customers to make the right decisions.