Global IT spending is projected to reach $ 4.6 trillion in 2023, an increase of 5.1% over 2022, according to the latest Gartner forecast.
The analyst firm expects enterprises to “push digital business initiatives forward,” even though economists around the world anticipate a potential recession on the horizon.
IMF economists, to take just one example, predicted “increasingly bleak and uncertain prospects”, with baseline forecast for international economic growth slow down (opens in a new tab) from 6.1% in 2021 to 3.2% in 2022 and only 2.9% in 2023.
Where will expenses increase the most?
Gartner cautions that not all sectors are geared towards equal growth, spending on devices is likely to be the worst of all IT segments analyzed.
The house of analysts predicted device spending to decline by $ 0.6 to $ 735,394 million in 2023, a marked decline from the 15.8% increase in 2021.
The software market looks set to be the most successful IT segment, which grew 11.3% to $ 879,625 million in 2023, which the company attributed to “moving to cloud options.”
The impressive performance of the software segment may be related to the continued need for tools enabling video conferencing and remote collaboration after the pandemic.
IT services are expected to be the second most successful segment, growing by 7.9% in 2023 to $ 1,357,914 million in 2022.
Data center systems and communication services are also poised for solid growth, if Gartner’s statistics are to be believed, with projected growth of 3.4% and 2.4% respectively in these areas.
“Enterprise IT spending is immune to recession as CEOs and CFOs increase spending on digital business initiatives instead of cutting IT budgets,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Economic turmoil will change the context of technology investment, increasing spending in some areas and accelerating declines in others, but it is not expected to significantly affect the overall level of corporate technology spending.”
“However, inflation has reduced the purchasing power of consumers in almost every country in the world. Consumer purchasing power has been reduced to such an extent that many consumers are now postponing device purchases in 2022 until 2023, reducing device spending by 8.4% in 2022 and 0.6% in 2023. ” .
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