IT spending is anticipated to grow at 2.7 percent to $3.5 trillion in 2017 against the earlier growth prediction of 3 percent, according to Gartner.
IT spending in 2016 dropped 0.6 percent.
The spending on data center systems will be $175 billion (+2.6 percent) in 2017 and $176 billion (+1 percent) in 2018.
Spending on enterprise software will be $355 billion (+6.8 percent) in 2017 and $380 billion (+7 percent) in 2018.
Spending on devices will be $589 billion (+0.1 percent) in 2017 and $589 (nil growth) in 2018.
Global spending on IT services will be $938 (+4.2 percent) in 2017 and $981 billion (+4.7 percent) in 2018.
Spending on communications services will be $1,408 billion (+1.7 percent) in 2017 and $1,426 (+1.3 percent) in 2018, said Gartner.
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Gartner said some of the political uncertainty in global markets has fostered a wait-and-see approach causing many enterprises to forestall IT investments.
Cloud, blockchain, digital business and artificial intelligence could have supported the IT spending to grow substantially.
Spending on PCs, tablets, ultramobiles and mobile phones is projected to remain flat in 2017 at $589 billion. Emerging markets will drive the replacement cycle for mobile phones as smartphones in these markets are used as a main computing device and replaced more regularly than in mature markets.
IT services market is forecast to grow 4.2 percent in 2017. Buyer investments in digital business, intelligent automation, and services optimization and innovation continue to drive growth in the market, but buyer caution, fueled by broad economic challenges, remains a counter-balance to faster growth.
Aggressive build-out of cloud computing platforms by companies such as Microsoft, Google and Amazon is pushing the server forecast to reach 5.6 percent growth in 2017.
There will be 3 percent decline in external controller-based storage. Data center systems segment will grow 2.6 percent in 2017.
