IT spending in EMEA region will return to growth in 2020

Gartner’s research shows that in 2020, IT spending will reach $798 billion in the EMEA region (Europe, Middle East, Africa). This is an increase of 3.4 percent compared to 2020. In 2019, spendings had decreased by 3.2 percent in total.

“2020 will be a year of recovery for IT spending in EMEA after three consecutive years of decline,” said John Lovelock, research vice president at Gartner. “This year, the euro and pound sterling devalued in comparison to the U.S. dollar, at least in part due to Brexit concerns, which reduced IT spending and caused an increase in local prices for technological hardware. However, the year 2020 will be a year of rebound, as Brexit is expected to be resolved and the pressure on exchange rates will be eased”.

Gartner’s analysts discussed the predicted trends at the Gartner IT Symposium/Xpo in Barcelona. Expenditure on devices, for example, will fall by 10.7 percent, while spending on enterprise software will rise sharply. In 2019 and 2020, they will increase by 3.4 percent and 9.2 percent respectively. Expenditure on Software-as-a-Service in particular will rise sharply, by as much as 14.1 percent in 2019 and by 17.7 percent in 2020.

Regulations drive up spending

Due to the complexity of regulations in the EMEA region, more and more is being spent on security solutions and services, as well as on compliance. The complex geopolitical relationships between regions and countries in the EMEA region also contribute to this. In 2019, growth in this field will be 9.3%, and in 2020 it will be 8.9%.

Furthermore, more money is being spent on cloud adoption, particularly in the US and the UK, and overall spending on the cloud will increase to $57.7 billion in 2020 from $50 billion in 2019. “Organisations in Europe, regardless of industry, are shifting their balance from traditional to digital – towards a “technological equilibrium”, a technological balance that determines how digital a company must be in order to compete or even take the lead,” says Lovelock. In other words, organisations are starting to see digitisation as a condition for maintaining their competitive edge.