Businesses optimising IT services amid slowing global market

Businesses optimising IT services amid slowing global market (NicoElNino via istock)

An increased number of businesses are looking to optimise IT services within their systems amid a global slowdown in predicted spending.

Recent research from Gartner suggests worldwide IT spending is set to slip by 0.5 per cent to $3.49 trillion (£2.44 trillion) in 2016, with analysts citing currency fluctuations for the change.

John-David Lovelock, research vice president at Gartner said: "There is an undercurrent of economic uncertainty that is driving organisations to tighten their belts, and IT spending is one of the casualties.

"Concurrently, the need to invest in IT to support digital business is more urgent than ever. Business leaders know that they need to become digital businesses or face irrelevance in a digital world. To make that happen, leaders are engaging in tough cost optimisation efforts in some areas to fund digital business in others."

Mr Lovelock added that optimisation efforts include using the savings from legacy system enhancements to fund digital initiatives.

"It's about doing more with the same funds," he added.

One of the most prominent results of these efforts are in the switching of spending between assets and services, with pieces of hardware that were once purchased as an asset now being implemented as a service.

It all means that companies can enjoy the same level of activity with a very different annual spend.

Meanwhile, although mobile and flexible working is still an important part of how many companies do business, an increasing number of companies are having to contend with an increasingly saturated smartphone market, with worsening economic conditions in certain countries playing a key factor.

In contrast, spending on enterprise software is on track to rise by 4.2 per cent to total $321billion (£225.21 billion), although delays to the adoption of Windows 10 and Windows Server 2016 mean that the operating system market may well be about to slow down.

The next step for companies could therefore prove crucial in determining their long-term digital future, meaning that it is always best for firms to call on a trusted partner to help them migrate to the cloud.