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Gartner cut its global IT spending growth forecast by more than 50% a few months ago. However, enterprise spending on software and services is expected to remain strong.
Why do we care? Despite the worsening economic picture, it is good to see businesses remaining committed to long-term goals. Companies are clearly aware that increasing productivity and efficiency requires continued IT investments.
Global IT spending is expected to total $4.5 trillion this year, an increase of 2.4% from 2022, according to Gartner. This is a sharp decline from the previous quarter, when it forecast a growth rate of 5.1 percent. The main reason for this is inflation. Spending on equipment is expected to decrease by 5.1%. This will be followed by a 10.6 percent decline in 2022.
Spending on data center systems appears to have fallen off a cliff, moving from 12 percent growth last year to an expected 0.7 percent growth rate in 2023. While communications services are expected to grow by just 0.1% this year, that’s a big improvement from 2.4% in 2022. drop out
In contrast, software and IT services are projected to grow by 9.3 percent and 5.5 percent in 2023, respectively. This marks another strong year for those segments. In the year In 2022, software increased by 7.1% and services increased by 3%.
“Consumers and enterprises are facing very different economic realities,” John-David Lovelock, senior VP analyst at Gartner, said in a statement. “While inflation is destroying consumer markets, B2C companies are contributing to layoffs, and enterprises are increasing spending on digital business initiatives despite the global economic slowdown.”
About the author
Constantine von Hoffmann is the Editor-in-Chief of Martech. A veteran journalist, Cohn has covered business, finance, marketing and technology for CBSNews.com, Brandweek, CMO and Inc. He has been the city editor of the Boston Herald, a news reporter at NPR and has written for the Harvard Business Review, Boston. Magazine, Conspiracy, and many other articles. From My Neighbor Totoro to the history of dice and board games, he has worked as a professional comedian giving talks at anime and gaming conventions, and is the author of the magical realist novel John Henry the Vision. He lives in Boston with his wife, Jennifer, and more or less dogs.
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