And the latest report from research firm Gartner also forecasts that in New Zealand, spending on technology products and services is forecast to reach NZ$13.5 billion this year, an increase of 2.6% from 2018, and reach NZ$13.9 billion in 2020.
Worldwide Gartner projects IT spending is to total US$3.76 trillion in 2019, an increase of 3.2% from 2018.
“Despite uncertainty fuelled by recession rumours, Brexit, and trade wars and tariffs, the likely scenario for IT spending in 2019 is growth,” said John-David Lovelock, research vice-president at Gartner.
“IT is no longer just a platform that enables organisations to run their business on. It is becoming the engine that moves the business,” said Lovelock. “As digital business and digital business ecosystems move forward, IT will be the thing that binds the business together.”
Gartner says that with the shift to cloud, a key driver of IT spending, enterprise software will continue to exhibit strong growth, with worldwide software spending projected to grow 8.5% in 2019. It will grow another 8.2% in 2020 to total US$466 billion. Organisations are expected to increase spending on enterprise application software in 2018, with more of the budget shifting to software as a service (SaaS).