Gartner, Inc. has revealed in latest forecast that worldwide Information Technology (IT) spend would contract to N728.706 NGN ($3.66 trillion) in 2015.
The UNION gathered from the webpage of the US-based global research body that this figure represents 1.3 percent decrease from 2014 and links the slowdown to increasing effects of rising dollar to other currencies.
“We forecast U.S.-dollar-valued worldwide IT spending in 2015 to shrink by 1.3 percent, down from 2.4 percent growth forecast in last quarter’s update,” said John-David Lovelock, research vice president at Gartner.
“However, this is not a crash, even if it looks like one. The recent rapid rise in the value of the U.S. dollar against most currencies has put a currency shock into the global IT market. Taking out the impact of exchange rate movements, the corresponding constantcurrency growth figure is 3.1 percent, only off 0.6 percent from last quarter’s update. Such are the illusions that large swings in the value of the dollar versus other currencies can create.” “However, this illusion masks a bigger issue that has real implications. Every product or service that has a U.S. dollarbased component must have those costs covered at the lower exchange rate. The simple implication is that there will be price rises. However, there are many other market forces at work — protecting U.S. dollar profits will require a nuanced and multifaceted approach involving pricing, partners and product management,” said Mr. Lovelock.
The Gartner Worldwide IT Spending Forecast is the leading indicator of major technology trends across the hardware, software, IT services and telecom markets. For more than a decade, global IT and business executives have been using these highly anticipated quarterly reports to recognize market opportunities and challenges, and base their critical business decisions on proven methodologies rather than guesswork.
Spending for all devices in 2015 was revised down partly due to a slowdown in PC purchases in Western Europe, Russia and Japan, countries where local currency has devalued against the dollar. The mobile phone market is not as affected by the currency shifts.