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New influencers of IT emerge as tech spending moves away from CIO

James Henderson | March 28, 2017
Technology purchases from line of business budgets forecast to grow faster than purchases funded by the IT organisation.

Combined IT-LOB purchases of outsourcing and project-oriented services (US$422 billion) will represent nearly one third of all technology spending worldwide in 2017.

The technology categories that will see the fastest growth in spending over the 2015-2020 forecast period are tablets (16.2 per cent CAGR for IT and LOB purchases combined) and mid-range enterprise servers (14.7 per cent combined CAGR).

Meanwhile, LOB buyers will also continue to invest aggressively in applications and application development and deployment (8.5 per cent and 9.3 per cent CAGRs, respectively).

In 2017, IDC expects LOB technology spending to be larger than IT organisation spending in five industries - discrete manufacturing, healthcare, media, personal and consumer services, and securities and investment services.

By 2020, this number is forecast to grow to nine as the insurance, process manufacturing, professional services, and retail industries see LOB purchases move ahead of IT purchases.

The industries with the fastest growth in LOB spending are professional services (6.9 per cent CAGR), healthcare (6.6 per cent), and banking (6.5 per cent).

However, LOB technology spending is forecast to grow faster than that of the IT organisation in all 16 industries covered in the spending guide.


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