After a difficult year that saw a decline in IT spending across the world, Gartner (Opens in a new tab) It released a new forecast claiming that things will return to growth as we head into 2023.
The analyst firm found that global IT spending for 2022 decreased slightly compared to the previous year, recording an overall decline of 0.2% in the sector.
This decline was largely due to a 10.6% decrease in hardware spending, however data center system spending rose by a staggering 12.0%, indicating our growing need for digital storage.
IT spending 2023
However, as consumers are expected to face a challenging economic landscape in the coming year, Gartner believes that companies will continue to spend large sums in IT.
Software and IT services are set to see the biggest growth among IT spending this year, with telecom services and data center systems around managing some positive numbers.
In fact, the only segment that Gartner thinks will shrink is hardware (down 5.1%), which may have already been updated as companies shift to Hybrid work Routine in recent years, leading to an aggregate forecast that global IT spending will rise 2.4% in 2023 compared to the year before, with numbers projected to be in the region of $4.49 trillion (versus $4.39 trillion in 2022).
However, the company expected growth in 2023 to be in the region of 5.1% last October, indicating that the lasting effects of ongoing global events continue to affect companies around the world.
“A turbulent economy has changed the context for business decisions and can cause IT managers to become more indecisive, delay decisions, or reorder priorities,” said John David Lovelock, Gartner senior vice president of senior analyst.
Looking ahead to the year ahead, it’s possible that some companies guilty of overinvesting in growth during the pandemic will now need to carefully consider options to cut back, while many workers seek jobs that can keep up with demand for higher wages.