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November 5, 2012

Mobile devices and software to drive IT investment in EMEA region to $1.15tn in 2013

About $136bn is expected to be spent on mobile devices including notebook PCs, mobile phones, ultramobiles and tablets

By CBR Staff Writer

Despite the ongoing economic concerns, IT spending in Europe, the Middle East and Africa (EMEA) region will grow 1.4% during 2013 to reach $1.154tn, according to a report by Gartner.

The analysts believe that the increase in investment will mainly be driven by investment in mobile devices and software.

Big data is also expected to change the IT landscape in the region generating about 1.3 million new jobs.

Gartner senior vice president and global head of Research Peter Sondergaard said this year is a pessimistic year for IT spending in Europe.

"In 2012, we estimate that IT spending will decline 3.6 percent in EMEA and 5.9 percent in Western Europe," Sondergaard said.

"However, the EMEA region will return to growth in 2013 and continue to grow through 2016 when spending will reach $1.247 trillion."

"The mobile device market is currently the bright spot of the IT industry," said Mr. Sondergaard.

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"We are seeing tablets and smartphones significantly outpace purchases of traditional PCs."

About $136bn is expected to be spent on mobile devices including notebook PCs, mobile phones, ultramobiles and tablets in the region by the end of this year which is expected to reach $188bn in 2016.

Mobile device market in the Western Europe is expected to grow 8% in 2012, with both consumers and businesses are adding tablets to their portfolio of mobile devices while in contract, the mobile PC market is expected to decrease 5% in the region.

Mobile phone shipment in Eastern Europe and the Middle East and Africa dominate the market, with tablet adoption increasing through to 2016, the report revealed.

About two-thirds of the workforce is expected own a smartphone or tablet device by 2016 which is expected to change the way software being bought.

With growth of mobile devices, traditional software providers will have to rewrite their applications to carter to the needs of tablet-based environments and the analysts expect that there will be strong increase in software spending.

Software spending in the region is expected to grow 3.1% during 2013 and reach about $100bn in 2016.

"The Nexus of Forces are the confluence and integration of cloud, mobile, social and information that will transform IT architecture and create a new information layer in our economy that will create new jobs, new revenue, and require new skills," Sondergaard said.

During the next three years, EMEA region along with North America and Japan will be the most active region to use big data.

About 4.4 million new IT jobs will be created globally to support big data including 1.3 million IT jobs in EMEA and 1.2 million IT jobs in Western Europe alone.

With huge jobs anticipated to be created on these sectors, Garner believes that public education systems and training within companies will not be able to meet that demand.

"We expect that organizations will be unable to fill out these positions, and we estimate that only 31 percent of the IT jobs will be filled in Western Europe.

"It places a requirement on our education systems and on companies to start to train those roles. We need these kinds of roles across all businesses to analyze data and information, which will ultimately generate new revenue," Sondergaard added.

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