The global economic recovery after the Covid-19 crisis is taking place. Companies are less afraid to increase the volume of their investments. Moreover, the latter are becoming more and more reliable, as the foundations are solidifying again.
Gartner has published data predicting how much global IT spending will increase. In this Befree blog post we summarize them and show them in an infographic for clarity.
What are Information Technologies?
Before we start, it is worth taking a look at the concept of IT and shed some light on it. Information Technology is the application of computers and telecommunication equipment to store, retrieve, transmit and manipulate data. The main purpose of IT is the production of information for analysis and subsequent decision making based on the conclusions drawn therefrom.
The term IT is often confused with another similar concept: ICT – or information and communication technologies. However, this is easily solved: IT encompasses the entire information domain, so that ICT is only a part of IT. ICT necessarily involves the communication of information, while IT refers to all upstream and downstream processes.
IT investment trends
Gartner forecasts global IT spending to reach $4.6 trillion in 2023, an increase of 5.1% over 2022. Demand for IT in 2023 will be strong as companies drive digital business initiatives in response to economic turbulence.
“Enterprise IT spending is recession-proof, as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,” says John-David Lovelock, Gartner analyst. “The economic turmoil will change the backdrop for technology investments, increasing spending in some areas and accelerating declines in others, but is not expected to have a material impact on the overall level of enterprise technology spending.”
“However, inflation has cut into consumer purchasing power almost everywhere in the world. Consumer purchasing power has been reduced to the point that many consumers are deferring device purchases from 2022 to 2023, which will cause device spending to decline by 8.4% in 2022 and 0.6% in 2023.”
The sample of data collected on worldwide IT spending is divided in the Gartner study into five types: communication services, IT services, devices, enterprise software and data center systems:
New paradigm in 2025
A few months ago, Gartner predicted that IT investment in the cloud in 2025 will double that of traditional environments. It was in 2020 that cloud spending first surpassed that of traditional environments, but such an astonishing breakthrough in such a short time was not expected. That way, more than half of total IT spending will go toward building key cloud infrastructures.
Gartner research vice president Michael Warrilow said, "The shift to the cloud has accelerated over the past two years as the pandemic has taken hold and as organizations have responded to the new business and social dynamics that have emerged. As such, technology and service providers that fail to adapt to this pace "face an ever-increasing risk of becoming obsolete" Warrilow said.
