HK IT spending to grow 2.3% in 2018

Spending on IT in Hong Kong is on track to grow 2.3% this year (Image alexsl / iStockPhoto)

Hong Kong's IT spending is on track to grow 2.3% in 2018 to HK$145.76 billion, but growth will fall back to a more modest 1.5% in 2019 to HK$147.98 billion, Gartner predicts.

The research firm expects that spending on enterprise software in Hong Kong will grow at the highest rate of 9.3% to HK$13.12 billion in 2018 and a further 8.9% to HK$14.29 billion in 2019.

Devices will meanwhile overtake communications services as the biggest spending category, growing 4.9% to HK$49.06 billion. Communications services spending will decline 0.3% to HK$49.02 billion.

But this development will be short lived, with Gartner expecting communications services spending to grow 0.3% next year to HK$49.16 billion while device spending declines 0.4% to HK$48.86 billion.

Data center systems spending is meanwhile expected to fall a steep 13.1% in 2018 to HK$6.16 billion, but return to a 2% growth in 2019 to HK$6.28 billion.

Finally, IT services spending is expected to grow 3.4% in 2018 to HK$28.4 billion and 3.5% in 2019 to HK$29.39 billion.

In China, total IT spending is expected to grow 6.1% this year to 2.64 trillion yuan, with growth across all categories, and a further 3.9% in 209 to 2.74 trillion yuan.

Enterprise software will be the fastest growing category across each of the two years, recording 12.7% growth in 2018 to 73 billion yuan and 12.6% growth in 2019 to 82.23 billion yuan.

Communications services will remain the biggest category of spending at 1.16 trillion yuan in 2018, followed by devices at 1.03 trillion yuan.