Government IT Spending to Be Hit Hardest by Rising US Dollar Strength, Warns Gartner
The strength of the US dollar will cause IT spending to fall by 3.5% across all vertical markets in 2015, as rising hardware costs prompt CIOs to delay or halt new technology deployments, Gartner has predicted.
The analyst house said the on-going disparities in global currency rates are likely to cause a slowdown in IT spending across all industries, with the public sector set to see the biggest drop.
As such, Gartner predicts IT spending will hit $2.69tn in 2015, down from $2.79tn in 2014.
Gartner research vice-president Anurag Gupta said IT buyers are not the only ones feeling the pressure from unfavourable exchange rates.
“Appreciation of the US dollar, mainly against the euro, yen and ruble, along with the relative slowdown of emerging markets – particularly Russia, Brazil and China – had a double impact on IT spending in 2015,” he said.
“Unsurprisingly, most technology firms reporting revenue in US dollars have taken a negative hit on their quarterly revenue earnings.”
IT spending within the public sector looks set to take the largest dip of all industries during 2015, with Gartner forecasting a 5% drop, which is hardly surprising given the austerity drives almost all governments across the globe seem to be subscribing to.
As previously reported by Computer Weekly, this has seen the US Office of Management and Budget advising federal agencies to reduce their departmental spend by 10% by revising how they approach IT purchases.
Full article by Caroline Donnelly, Computer Weekly
About the Author
Roger Chu is the Marketing Coordinator at GSAmart, the leading GSA sales and marketing partner for technology companies.
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