Global IT spending projected to reach $4.4 trillion this year: Gartner

Research from Gartner projects worldwide IT spending to reach $4.4 trillion this year, up 4 percent from 2021 levels.

Increased salaries in the IT services industry alongside inflation has led to rising prices for tech services, which has contributed to the increased spending growth for software and services such as analytics, cloud computing, seamless customer experiences and security.

“This year is proving to be one of the noisiest years on record for CIOs,” said John-David Lovelock, distinguished research vice president at Gartner.

“Geopolitical disruption, inflation, currency fluctuations and supply chain challenges are among the many factors vying for their time and attention, yet contrary to what we saw at the start of 2020, CIOs are accelerating IT investments as they recognise the importance of flexibility and agility in responding to disruption.”

Software spending is set to reach $674.9 billion this year, up 9.8 percent, and IT services will reach $1.3 trillion, up 6.8 percent.

Price and wage inflation along with talent shortages may continue to affect CIO behaviour, but are not expected to impede investments in technology. Nor is the Russian invasion of the Ukraine, Gartner claims.

“CIOs who keep their eye focused on key market signals, such as the shift from analog to digital business and buying IT to building it, as well as negotiate with their vendor partners to assume ongoing risks, will fare better in the long-term. At this point, only the most fragile companies will be forced to pivot to a cost cutting approach in 2022 and beyond,” said Lovelock.

The digital transformation trend is proving to be systemic and long-term, according to Gartner, as long-term investments in enterprise application software, infrastructure software and managed services rise.

According to Lovelock, “Some IT spending was on hold in early 2022 due to the Omicron variant and subsequent waves but is expected to clear in the near-term.

“CIOs anticipate having the financial and organizational ability to invest in key technologies throughout this year and next,” said Lovelock.