Aussie IT spending to reach $93.8bn this year: Gartner

By Dylan Bushell-Embling
Thursday, 11 July, 2019

Aussie IT spending to reach $93.8bn this year: Gartner

Australian ICT spending is on track to grow 3.1% this year to reach nearly $93.8 billion, Gartner has projected.

The research firm forecasts that spending will continue to increase each year through to 2022, by which time total spending is projected to reach $107 billion.

Market growth for 2019 is expected to be driven by higher spending on software — which is expected to increase by 11.8% year-on-year to $16.87 billion — as well as IT services, which is tracking to rise by just under 5% to $34.37 billion.

By contrast, spending on data centre systems is expected to fall 4.3% in 2019 to just over $3 billion, and spending on devices is expected to decrease 4.6% to $12.65 billion, Gartner said. The communications services segment will remain mostly flat at $26.86 billion.

Spending on IT services, software and communications services are all set to increase over each of the next three years through to 2022, Gartner’s forecast indicates.

But spending on devices is expected to fall again in 2020 — and while the market is set to recover, by 2022 spending still won’t have bounced back to 2018 levels.

In New Zealand, meanwhile, total technology spending is expected to grow 2.3% in 2019 to NZ$13.4 billion ($12.79 billion) and reach nearly NZ$15.2 billion in 2022.

Spending on data centre systems is forecast to fall from NZ$400 million in 2018 to NZ$388 million in 2019, and spending on devices is set to decline 5.2% over the same period to NZ$1.85 billion.

But spending on communications services will edge up slightly to NZ$5.02 billion, IT services spending will grow 4.6% to NZ$3.98 billion, and spending on software will jump 12% to NZ$2.19 billion, Gartner said.

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