Gartner’s IT spend forecast for 2022 shows CIOs ready to take risks

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Last month, Gartner released its IT spending forecast for 2022 in a report and webinar led by John-David Lovelock, research VP and Gartner’s reputable analyst.

Despite widespread concerns about declining attendance at key tech conferences and executives struggling to combat supply chain disruptions due to the epidemic, Gartner predicts a significant increase in global IT spending in 2022 – totaling અંત 4.5 trillion by the end of the year. 2022, an increase of 5.1% over last year’s figure.

“2022 is post-storm peace,” Lovelock said at the start of the webinar. “We’re starting to see markets revert to more traditional growth patterns, and buying behavior is a bit more predictable … we’re making a new breakthrough.”

Some industries are yet to emerge from the epidemic. Gartner cited airline transportation, offline entertainment, and industrial process production as some hard-hit examples. However, Lovelock noted that most CIOs seem to be less interested in “bottling down the hatch” and cutting budgets until this financial storm passes and would rather choose to be more bold and risky with their investments.

For example, Gartner’s research suggests that 57% of the board of directors have increased, or expected to increase, their “risk appetite” by 2022, and they have shown interest in shifting their overall costs from “buy” to “build” as an enterprise. See the whole world “[take] It breaks down old prejudices and old business models, “said Lovelock.

But, really, what do CIOs plan to “build” with this recent increase in investment costs? Gartner identified three key areas of financial focus for most enterprises by 2022: people, data and technology.

The CIO looks to plug in the differences of IT skills

Between “The Great Resignation”, in which countries are unable to fill positions at record levels – more than 50% in some countries – Lovelock recognizes the growing technical expertise gap as a growing concern for most organizations. In most cases, according to Gartner, this inadequacy is due to workers’ fundamental problems with both pay rises (at least compared to global inflation) and the growing desire to maintain a proper work / life balance.

Lovelock notes that while the average increase in workers’ wages is around 3%, this average is not enough to compete or adequately compensate for the 2021 inflation rate of 6%. This, in turn, has given many people a chance to change jobs during “The Great Resignation”, which some have argued is called “The Great Reshuffle”. Plus, there’s a seemingly good reason to “shuffle” now. Opposing the 3% pay increase report for workers who are currently employed, Gartner said those who are changing jobs are expected to receive a 5% pay increase.

In addition to compensation and maintaining the rate of inflation, employees are looking for more than money from employers. According to Lovelock, back in 2018, maintaining a work / life balance for most employees was hardly considered. Now, in 2022, the employer’s desire to provide the right work / life balance is considered a first or second priority for workers of all age groups.

As such, Lovelock says, employers need to carefully prepare their job listings to attract and retain new employees, emphasizing the qualities that are most desirable to potential applicants, so that most enterprises will need to continue developing. 2022.

Funding increases to support the workplace model of the workplace

For now, how does the CIO hope to slow down the flow of departing workers? The plan appears to be to accommodate their desire for a hybrid workplace – by the end of 2021, almost all of the surveyed employees had expressed a desire to work remotely (at least one day a week, according to Lovelock), having spent “some time”. Office is therefore expected to increase costs for technology (3.3%) and enterprise software (11%) to promote workplace collaboration, cybermash security, dynamic project workflow and workplace analysis, all with the aim of increasingly supporting the workforce or remote workforce. .

According to Gartner’s research, IT costs have already changed. Compensation for Internet access, for example, has seen a significant increase in costs in recent years, and is expected to grow by 2025. By simplifying the work model, the cloud cost eventually surpassed the non-cloud cost, and its size should be doubled. According to Gartner, the non-cloud market by 2025.

However, Lovelock warns that the technology that CIOs choose to purchase and implement requires more focus than ensuring workers can access the Internet and complete tasks remotely and securely. It should also allow places for professional development and self-service. Lovelock says remote employees feel excluded, and if their technology doesn’t work for them anymore, they won’t work for their company anymore.

Making new connections – and embracing new tech

While CIOs try to accommodate new employee demands for the workplace, they also seem to be interested in finding more immediate ways to maintain productivity and profitability. With Lovelock’s encouragement to find ways to support existing workers, most CIOs seem to be looking outside their workplace for new talent and new technology.

Another notable consequence of the growing skills gap in 2022 is that most IT departments and CIOs are expected to shift from “in-house” in-house services to managed services, inviting consultants to relieve employee stress who prefer to stay inside. An organization. As such, IT costs will undoubtedly increase in outsourcing markets, including infrastructure and application-driven services as well as hardware support.

In addition, as more and more industries and IT departments aggressively pursue hyperotomation to optimize digitization at a work-based level, CIOs can expect to reduce or completely eliminate the amount of manual effort required by pre-existing employees. Technologies such as digital twins, IoT platforms, virtual assistants and data fabric are expected to receive significant funding and attention in the coming years.

When it comes to new technology, Lovelock suggests that in 2022, companies will have a “new appetite for risk.” However, they are choosing to “play it safe” with their current employees, and looking for ways to retain the talent they have while making their workplace more attractive and sustainable for future employees.

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