Mumbai, April 10 (IANS): Global IT spending is projected to total $3.5 trillion in 2017 -- a 1.4 per cent increase from 2016, market research firm Gartner said on Monday.

The data centre system segment is expected to grow 0.3 per cent in 2017. While this is up from negative growth in 2016, the segment is experiencing a slowdown in the server market. 

"The strong USD has cut $67 billion out of our 2017 IT spending forecast. We expect these currency headwinds to be a drag on earnings of US-based multinational IT vendors through 2017," said John-David Lovelock, Research Vice President at Gartner. 

Driven by strength in mobile phone sales and smaller improvements in sales of printers, PCs and tablets, worldwide spending on devices (PCs, tablets, ultramobiles and mobile phones) is projected to grow 1.7 per cent to reach $645 billion in 2017. 

This is up from negative 2.6 per cent growth in 2016. The tablet market continues to decline significantly, as replacement cycles remain extended and both sales and ownership of desktop PCs and laptops are negative throughout the forecast, the findings showed.

Through 2017, business Windows 10 upgrades should provide underlying growth, although increased component costs will see increase in PC prices.