Global IT spending is expected to grow at a slower pace of 2.1 per cent at $3.7 trillion in 2014, on account of reduction in growth expectations for devices, data center systems and IT services, research firm Gartner today said.
This growth rate is lower than the earlier projections of 3.2 per cent growth, Gartner said in a statement.
"Price pressure based on increased competition, lack of product differentiation and increased availability of viable alternative solutions has had a dampening effect on the short term IT spending outlook," Gartner Managing Vice President Richard Gordon said.
However, 2015 through 2018 will see a return to 'normal' spending growth levels as pricing and purchasing styles reach a new equilibrium, he added.
For 2015, Gartner expects the total IT spending to grow 3.7 per cent to $3.88 trillion.
"IT is entering its third phase of development, moving from a focus on technology and processes in the past to a focus in the future on new business models enabled by digitalisation," he said.
According to Gartner, spending on devices (including PCs, ultramobiles, mobile phones, tablets and printers) is forecast to grow 1.2 per cent in 2014 to $ 685 billion.
Spending on data center systems ($140 billion) and enterprise software ($321 billion) is expected to grow 0.4 per cent and 6.9 per cent, respectively.
IT services is expected to see 3.8 per cent growth to $967 billion, while telecom services are forecast to grow 0.7 per cent to $1.63 trillion during the period.