The Global IT spending is projected to total $3.9 trillion in 2021, an increase of 6.2% from 2020, according to the latest forecast by Gartner, Inc.
Worldwide IT spending declined 3.2% in 2020 as CIOs prioritized spending on services that were deemed “mission-critical” during the initial stages of the pandemic.
However, Gartner noted, the unprecedented speed of digital transformation to address remote working requirements has abated the pandemic’s negative effect on IT spending going into 2021.
“CIOs have a balancing act to perform in 2021 — saving cash and expanding IT,” said John-David Lovelock, distinguished research vice president at Gartner.
“With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels.
Digital business, led by projects with a short Time to Value, will get more money and board level attention going into 2021
Gartner Analyst
Also read: Gartner Forecasts Public Cloud Spending to Grow 18% in 2021
Gartner global IT Spending report says all segments are forecast to return to growth in 2021
The good news is all IT spending segments are forecast to return to growth in 2021. Enterprise software is expected to have the strongest rebound (8.8%) as remote work environments are expanded and improved.
The devices segment will see the second highest growth in 2021 (8%) and is projected to reach $705.4 billion in IT spending.
COVID-19 has shifted many industries’ techquilibrium
Through 2024, businesses will be forced to accelerate digital business transformation plans by at least five years to survive in a post-COVID-19 world that involves permanently higher adoption of remote work and digital touchpoints.
Also read: IDC Forecasts Worldwide AI Spending will double in four years
Gartner forecasts global IT spending related to remote work will total $332.9 billion in 2021, an increase of 4.9% from 2020.
“Digital business represents the dominant technology trend with areas such as cloud computing, core business applications, security and customer experience at the forefront.
Optimization initiatives, such as hyperautomation, will continue.”
ITVibes recommended reading:
- Forrester Forecasts The Top Technology Trends To Watch In 2021 And Beyond
- Technology Advancements and Talent Shortage will shape the 2020s: Gartner
- As Data Volume Rises, Reliability remains a problem: Kearney Report
