A portion of Gartner’s “Forecast Alert: I.T spending, worldwide, 2Q16 update”.
“We increased the outlook for IT services in 2016 to 4.7% in constant currency, up from the 3.8% growth expected last quarter.
Demand for consulting services grew 9.7% in 2015, compared with forecast growth of 6.0%. Consulting services for digital business, including business model reinvention and operating model transformation, have been higher than expected. Demand in this area is expected to continue to be high through 2020. We now expect the market to grow at a CAGR of 8.3% instead of the 6.1% forecast in the 1Q16 forecast.
The forecast for implementation services has been increased slightly from a CAGR of 2.6% in the 1Q16 forecast to a CAGR of 2.9% in this forecast. We continue to see an increase in projects around digital services, with their funding being partially supported by savings from cost optimization work. Growth rates are improving but are still constrained because projects in emerging technologies tend to be small and tentative, while projects in mature segments have experienced lower growth due to increased automation and reduced project size, as buyers increasingly move to cloud implementations.
The worldwide forecast for IT outsourcing (ITO) has been slightly increased from a CAGR of 5.1% in the 1Q16 forecast to a CAGR of 5.6% today. This increase stems from the accelerated willingness of buyer organizations to move to cloud implementations.
In terms of end-user spending on communications services in constant dollars in 2016, we see modest growth of 0.5% to $1.58 trillion — down $78 billion from our 1Q16 forecast.
Consumer-fixed broadband revenue will rise slightly, driven by increased adoption and usage of video on demand (VOD) services. Enterprise customers remain focused on driving down costs via policies for Wi-Fi offload and contracts optimizing the number of their providers for communications services and global WANs.”
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