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CIOs warned of IT overspending risks as US dollar strength grows

From ComputerWeekly.com

"CIOs could end up accidently overspending on IT in 2015, according to Gartner, as the strengthening US dollar prompts suppliers to covertly hike the cost of products to account for the shortfall in exchange rates.

The warning comes as the analyst house made public its prediction that worldwide IT spending will contract by 5.5% this year compared with 2014 levels because of the growing strength of the US dollar.

The organisation has been quick to add, however, that this projected downturn isn’t all it seems, and is simply a ‘mathematical impact’ of viewing the IT market in dollar terms.

If exchange rate fluctuations are disregarded and the market is viewed in constant currency terms, said Gartner, IT spending is actually forecast to grow by 2.5% this year.

Even so, the knock-on effect of the dollar’s strength means many US hardware suppliers are hiking up their product prices to protect their margins and cover costs, head of forecasting John-David Lovelock told Computer Weekly.”

Read more at ComputerWeekly.com


NCC Weekly News Update 30 June 2015

 

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