Worldwide IT spending is projected to total USD 3.9 trillion in 2020, an increase of 3.4 per cent from the previous calendar year, according to the latest forecast by Gartner, Inc.
Global IT spending is expected to cross into $ 4 trillion territory next year, the research firm said.
"Although political uncertainties pushed the global economy closer to recession, it did not occur in 2019 and is still not the most likely scenario for 2020 and beyond, said John-David Lovelock, distinguished research vice president at Gartner, in a statement.
"With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting," he added.
Software will be the fastest-growing major market this year, reaching double-digit growth at 10.5 per cent.
"Almost all of the market segments with enterprise software are being driven by the adoption of software as a service (SaaS)," he said.
"We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. SaaS is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023," Lovelock added.
Growth in enterprise IT spending for cloud-based offerings will be faster than growth in traditional (non- cloud) IT offerings through 2022, Gartner said.
Organisations with a high percentage of IT spending dedicated to cloud adoption is indicative of where the next- generation, disruptive business models will emerge, it noted.
The headwind coming from a strong U.S dollar has become a deterrent to IT spending on devices and data centre equipment in effected countries.
"For example, mobile phone spending in Japan will decline this year due to local average selling prices going up as a result of the U.S dollar increasing. The U.K's spending on PCs, printers, servers and even external storage systems is expected to decline by three per cent, too," said Lovelock.
Despite last quarter showing the sharpest decline within the device market among all segments, it will return to overall growth in 2020 due to the adoption of new, less- expensive phone options from emerging countries.
"The almost USD 10 billion increase in device spending in Greater China and Emerging Asia/Pacific is more than enough to offset the expected declines in Western Europe and Latin America," said Lovelock.