Mumbai–Driven by growth in software and IT services revenue, worldwide IT spending is forecast to reach $3.5 trillion in 2017 — up 2.9 per cent from 2016 estimated spending of $3.4 trillion, market research firm Gartner said on Wednesday.

Software spending is projected to grow six per cent in 2016. It will grow another 7.2 per cent in 2017 to total $357 billion, the report said, adding that IT services spending is on pace to grow 3.9 per cent in 2016 to reach $597 billion and increase 4.8 per cent in 2017 to reach $943 billion.

While discussing the impact of Brexit on IT investment at the “Gartner Symposium/ITxpo” event here, John-David Lovelock, research vice president at Gartner, said that the immediate impact of Brexit has caused modest growth in IT spending to turn negative for 2016.

“Without the UK, global IT spending growth would have been modestly positive at 0.2 per cent in 2016, but with the UK included, IT spending is expected to decrease 0.3 per cent. The immediate impact of the British pound will also cause the IT spending patterns to shift as prices for IT will increase,” Lovelock added.

While talking about IT spending trends in the wake of the US presidential election, Lovelock said that there is a slight pause in IT spending leading into the election and then a relief in spending, subsequently.