Report: Global IT spending expected to hit $4.4T

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According to the latest forecast by Gartner, Inc., global IT spending is projected to reach કુલ 4.4 trillion in 2022, a 4% increase from 2021.

Despite the myriad factors that have attracted the attention of enterprise leaders this year, from geopolitical disruptions and inflation to currency fluctuations and supply chain challenges, IT costs have not declined. In fact, CIOs promote IT investments in categories such as security, customer experience, analytics, and the cloud because they recognize the importance of being flexible and agile in responding to such factors.

Inflation that was previously seen with IT hardware such as mobile devices, tablets and PCs is spreading to software and services, helping to drive cost growth in this segment by 2022 and 2023. More specifically, software costs are expected to grow 9.8%. IT services are projected to grow by $ 674.9 billion and 6.8% to $ 1.3 trillion by 2022.

Global IT spending is expected to grow 4% this year, with software costs experiencing the fastest growth of around 10%.
CGlobal IT costs are expected to grow 4% this year, with software costs experiencing the fastest growth rate of around 10%.

Gartner expects digital business initiatives such as experimental end-user experience and supply chain optimization to push double-digit growth in spending on enterprise applications and infrastructure software in 2023.

Russia’s invasion of Ukraine is not expected to have a direct impact on global IT spending. Cost and wage inflation, coupled with a shortage of talent and other delivery uncertainties, are expected to have a greater impact on the CIO’s plans in 2022.

For now, organizations are not concerned about the financial and institutional capacity to continue investing in key technologies this year and next. Due to the Omicron variant, some of the initial recessions are expected to subside in early 2022. Only the most fragile companies will be forced to take a cost-cutting approach.

Read the full report by Gartner.

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