Gartner predicts that global IT spending will reach $4.6 trillion in 2023, up 5.1% from 2022 despite geopolitical tensions and a weakening economy.
The slowdown, persistent inflation, and fears of a potential recession may force companies to reduce overall spending. However, IT budgets remain resilient, largely due to expected returns on technology investments.
Companies have learned in recent years that cloud migration, data analytics, and AI technologies provide a bridge to optimization, efficiency gains and cost savings. Most are willing to continue their modernization journey despite dwindling economic realities.
Gartner predicts that spending on software will increase by 11.3% in 2023, while spending on personal computers and other devices will decrease by just over half a percentage point.
“In 2020, CIOs demonstrated that they had solutions to problems. Now, CEOs and CFOs are returning to CIOs to assist them in solving problems and giving them more money to assist other departments in saving money” said John-David Lovelock, distinguished VP analyst at Gartner.
Customer-centric IT and the use of technology to create revenue-generating products and services have been priorities for businesses this year, and businesses will not be able to scale back the cloud as they have done previously, Lovelock said.
The sources for this piece include an article in TheRegister.