IT spending could be a casualty of economic uncertainty: Gartner

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Source:   —  April 07, 2016, at 1:02 PM

Worldwide IT spending is expected to fall slightly this year to $3.49 trillion, as the powerful U. S. dollar continues to get its toll, the firm said on Thursday.

n">Worldwide spending on information technology could become one of the casualties of global economic uncertainty this year, according to research firm Gartner Inc.

Worldwide IT spending is expected to fall slightly this year to $3.49 trillion, as the powerful U. S. dollar continues to get its toll, the firm said on Thursday.

The global uncertainty is making organizations "tighten their belts".

Investing in digital businesses and services at a time when income growth doesn't support IT spending is forcing organizations to slice costs, Gartner said.

In fixed currency, Gartner predicts a 1.6 % growth rate in IT spending this year, compared with 2.4 % a year earlier.

The problem is U. S.-based multi-nationals can't create as much money, even there is a global expand in IT activity, John-David Lovelock, research vice president at Gartner said in an interview.

Networking giant Cisco Systems Incorporated said in Feb that it was weathering a global slowdown in information-technology spending. Analysts at the time said that Cisco'south warning could be a horrible sign for some technology companies.

Spending on devices love PCs, mobile phones, tablets and printers is also expected to decline 3.7 % to $626 billion, Gartner said, due to the global saturation in the smartphone and PC markets.

(Reporting by Narottam Medhora and Anya George Thakaran in Bengaluru; Editing by Maju Samuel)

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