Worldwide IT Spending To Grow By 4.3% In 2023: Report
A research study recently revealed that worldwide IT spending is projected to grow by a total of USD 4.7 trillion in 2023, an increase of 4.3 per cent from 2022.
The shift in technology spending is attributed to the CIOs that continued to lose the competition for IT talent. The change is to enable automation and efficiency to drive growth at scale with fewer employees, the study said additionally.
The research by Gartner underlined that the software segment will see double-digit growth in 2023 as organisations would increase utilization and reallocate spending to core applications and platforms that support efficiency gains, such as enterprise resource planning (ERP) and customer relationship management (CRM) applications.
It emphasised that increased vendor prices will also continue to bolster software spending throughout this year.
Commenting on the prediction John-David Lovelock, Distinguished VP Analyst at Gartner said, “Digital business transformations are beginning to morph.”
He stressed that IT projects are shifting their focus from external-facing deliverables such as revenue and customer experience to more inward-facing efforts that are concentrated on optimization.
Lovelock said the devices segment is experiencing one of its worst growth years on record even as inflation eases slightly in some regions, macroeconomic factors are still negatively impacting discretionary spending and lengthening device refresh cycles, he added.
The study mentioned that in India, IT spending is projected to total USD 112.2 billion in 2023, which is slightly higher than last quarter’s update. Despite being cautious, Indian CIOs will continue investing in improving employee productivity and customer experience (CX), leading to a 14.6 per cent annual growth in enterprise software spending.
Talent shortages remain a perennial concern that is projected to drive an 8 per cent annual growth in IT services spending in the country, the report said.
“When it comes to AI this year, organisations can thrive without having AI in production, but they cannot be without a story and a strategy,” added Lovelock shedding light on the generative AI technology.
