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HK ICT spending on track to grow 4.2% in 2018

HK ICT spending on track to grow 4.2% in 2018Total ICT spending in Hong Kong is forecast to grow 4.2% in 2018 after a significant decline this year, according to Gartner.

The research firm expects local ICT spending to grow to HK$146.63 billion next year, which compares to a projected 8.4% decline in spending for 2017 to HK$140.73 billion.

Enterprise software will be the fastest growing portion of the overall market, accounting for HK$13.16 billion of the total projected spending.

But the largest segment of the Hong Kong market will be devices, with spending expected to increase 8.5% to HK$49.99 billion.

Devices will take over as the largest segment from communications services, which is itself expected to face a 0.2% reduction in spending to HK$49.05 billion, making it the only segment expected to experience an annual decline in revenues.

Spending on IT services is meanwhile projected to grow 3.4% to HK$28.4 billion while spending on data center systems is on track to edge up 0.3% to HK$6.022 billion.

In China, IT spending is predicted to grow 7.2% from 2017 to reach 2.65 trillion yuan (HK$399.6 billion), with enterprise software and IT services leading the charge with increases of 12.5% and 10.7% respectively.

While communications services will remain the largest segment by overall spending at 1.16 trillion yuan (up 4.8% from 2017), the device segment is quickly closing the gap with revenue expected to increase 9.6% to 1.05 trillion yuan.