After a difficult year of global IT spending declines, Knuth (opens in a new tab) New forecasts have been released claiming things will return to growth as we move into 2023.
The analyst firm found that global IT spending in 2022 will drop slightly compared to the previous year, with the industry overall declining by 0.2%.
This decline was largely due to a 10.6% decline in spending on equipment, but a staggering 12.0% increase in spending on data center systems, reflecting our growing need for digital storage.
IT spending in 2023
However, Gartner believes businesses will continue to spend heavily on IT, as consumers are expected to face challenging economic conditions in the year ahead.
Software and IT services will experience the biggest growth in IT spending this year, with communication services and data center systems seeing some positive numbers.
In fact, the only segment Gartner sees contracting is equipment (down 5.1 percent), as companies shift to mixed work The routine of recent years has led to overall expectations that global IT spending will grow by 2.4% in 2023 from the previous year, with the figure expected to reach $4.49 trillion (from $4.39 trillion in 2022).
Still, the company in October had projected growth of around 5.1% in 2023, suggesting the lingering effects of ongoing global events are still affecting businesses around the world.
“The turbulent economy has changed the context for business decisions and may cause CIOs to become more hesitant, delay decisions or re-prioritize,” said John-David Lovelock, Distinguished Vice President Analyst at Gartner.
Looking ahead to the year ahead, some companies that have felt guilty for overinvesting in growth during the pandemic may now need to consider more carefully their options for reducing resources, while many employees are looking for positions that can meet demand for higher wages.