UK based IT services support company Nexus has released new information on projected spending in the IT sector between 2005 and 2016. They have also looked into how the money will most likely be spent, which gives direction to the IT services industry as a whole. The research clearly shows that global spending on various IT services has risen steadily and will likely continue to do so.
The fact that spending is high in the IT sector is no surprise. IT, and particularly online, technology continues to develop on a near daily basis, and many struggle to keep up. Everyday consumers continuously purchase new, upgraded devices to keep up with new technology and businesses are exactly the same.
This has prompted UK-based IT support provider Nexus.co.uk to look at how money is actually being spent in the IT sector. Their research looked at global spending in the sector between 2005 and 2015, which enabled them to make predictions on what the spending is likely to be across 2016. They also found that, in 2015, global IT spending reached $3,517 billion.
The research showed that spending on IT has been going up almost each year since 2005. Projections are, therefore, that it will rise in 2016 as well. Last year, $3,157 billion was spent on IT. Of this, Nexus found that $912 billion went to the IT services industry. $310 billion went to the enterprise software industry. It is believed that, in 2016, the enterprise software industry will see the largest growth in 2016, expected to be $326 billion.
Nexus then looked into the sector of the IT industry which generally generates the most revenue, which is the telecom service sector. In 2015, it reached $1,472 billion. Interestingly, it is believed that spending will be lower this year and the forecast for 2016 is a sales revenue of $1,454 billion. In 2015, some $1,100 billion of the telecom service sector’s revenue was spent specifically on wireless technology. Sticking with the telecoms services industry. Nexus then started to look at devices specifically. In 2015, they had a revenue of $653 billion, but research suggests this will drop to $641 billion in 2016.
Overall, Nexus noticed that IT spending did fall in 2015. However, they expect there to be a growth of 0.6% overall this year. This is mainly because there is likely going to be an increase in IT support services spending over this year. In 2014, some $162.1 billion was spent on this sector and it is believed that, by 2018, it will reach $177 billion.
The statistics that Nexus have collected show how they believe IT spending will shared out in a segmented way. They found that, of the expected $2,178.1 billion in total IT spending, the money will be divided as follows:
- 3% will be spent on hardware.
- 6% will be spent on services.
- 20% will be spent on packaged software.
Nexus completed their research by looking into which sectors would spend the most on their IT services. They found growth in every sector between now and the end of the year is likely. They also determine which sectors were the biggest spenders on IT services and found them to be:
- Manufacturing and natural resources
- Banking and securities
- Government
- Communications and media services
- Retail
- Insurance
- Utilities
- Transportation
- Healthcare providers
- Wholesale trade
- Education
Carl Picken from Nexus.co.uk said:
“It is really interesting to see this continued growth in spending in the IT sector. Of course, this is good news for us, but it is also fascinating to learn about this spending. We will review our findings at the end of the year to see whether we were correct.”
