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IT spending in EMEA to bounce back in 2020

IT spending in EMEA to bounce back in 2020

Gartner analysts predict IT spending in EMEA will return to growth at US$798-billion in 2020.

IT spending in EMEA will return to growth at US$798-billion in 2020, an increase of 3.4% from 2019, according to the latest forecast by Gartner.

In a discussion of the macroeconomic trends affecting the IT spending market in EMEA, taking place at the Gartner IT Symposium/ Xpo in Barcelona this week, analysts said enterprise software will remain the fastest growing market segment in 2020.

EMEA spending for enterprise software will increase 3.4% and 9.2% in 2019 and 2020, respectively. Software as a service (SaaS) will achieve 14.1% growth in 2019 and 17.7% in 2020.

Table 1. EMEA IT Spending Forecast (Millions of US Dollars)


2019 Spending

2019 Growth (%)

2020 Spending

2020 Growth (%)

Data Centre Systems





Enterprise Software










IT Services





Communications Services





Overall IT





Source: Gartner (November 201

"2020 will be a recovery year for IT spending in EMEA after three consecutive years of decline," said John Lovelock, research vice president at Gartner. "This year declines in the Euro and the British Pound against the US Dollar, at least partially due to Brexit concerns, pushed some IT spending down and caused a rise in local prices for technology hardware. However, 2020 will be a rebound year as Brexit is expected to be resolved and the pressure on currency rates relieved."

According to Gartner, in 2019, EMEA spending on devices (including PCs, tablets and mobile phones) is set to decline 10.7%.

The company explains that higher prices - partly due to currency declines and a lack of new "must have" features in mobile phones - have allowed consumers to defer upgrades for another year.

Devices spending will not rebound in 2020, but instead fall by 1.3%, as both businesses and consumers move away from spending on PCs and tablets, the global market analysis and research firm stated.

"After 2019, the communications services segment will achieve long-term growth despite fixed-line services in both the consumer and business spaces declining every year through 2023. While mobile voice spending is flat - mainly due to price declines - mobile data spending increases 3% to 4% per year, which is keeping the overall communications services market growing in 2020," it added.

The complex geopolitical environment across EMEA has pushed regulatory compliance to the top of the priority list for many organisations, said Gartner. EMEA spending on security will grow 9.3% in 2019 and rise by 8.9% in 2020.

"Globally, security spending is increasing and being driven by the need to be compliant with tariffs, trade policies and intellectual property rights. In EMEA, privacy and compliance concerns, further driven by GDPR, take precedence," said Lovelock.

The US is leading cloud adoption and accounts for over half of global spending on cloud, which will total US$140.4-billion in 2020, up 15.5% from 2019.

In terms of cloud spending, the UK holds the No. 2 position behind the US. The UK spends 8% of IT spending on public cloud services, which will total $US 16.6 billion in 2020, up 13.2% from 2019. In EMEA, the overall spending on public cloud services will reach US$57.7-billion in 2020, up from US$50-billion in 2019.

Gartner predicts that organisations with a high percentage of IT spending dedicated to the cloud will become the recognised digital leaders in the future.

"Organisations in Europe, regardless of industry, are shifting their balance from traditional to digital — moving toward "techquilibrium," a technological balancing point that defines how digital an enterprise needs to be to compete or lead," said Lovelock. "Not every company needs to be digital in the same way or to the same extent. This move towards rebalancing the traditional and digital is clearly visible amongst EMEA companies."

Recently Gartner warned that as digitalisation drives many businesses within EMEA, 2020 is likely to be more volatile than 2019 – and CIOs will have to help their organisations deal with uncertainty and pressure.


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