Global IT spending is expected to increase 3 per cent to US$3.6 trillion ($3.5 trillion) in 2012, according to Gartner.
The increase is higher than the forecasted 2.5 per cent increase the analyst firm projected in the last quarter.
"While the challenges facing global economic growth persist — the eurozone crisis, weaker US recovery [and] a slowdown in China — the outlook has at least stabilised," said Richard Gordon, Gartner research vice-president.
"There has been little change in either business confidence or consumer sentiment in the past quarter, so the short-term outlook is for continued caution in IT spending."
Gartner is predicting spending on public Cloud will record strong growth, increasing from US$91 billion (A$89 billion) in 2011 to a predicted US$109 billion (A$107 billion) in 2012. Gartner expects IT spending on Cloud to almost double from 2012 spending to US$207 billion (A$203 billion) by 2016.
Global telecommunication services will continue to dominate IT spending due to growth in internet connections and services increasing in emerging markets and a strong uptake of tablets, gaming devices and other consumer electronic devices.
Gartner also predicts demand for consulting services will continue to remain high due to consulting becoming more technology-based, such as Big Data, impacting on consulting services.
However, global IT spending is still firmly focused on services, with Gartner forecasting a 2.3 per cent increase to US$864 billion (A$848 billion) in 2012.
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