Global IT spending to rise 5.1% in 2022

In a sign of economic recovery despite the ongoing pandemic, global IT spending is expected to hit US$4.5 trillion in 2022, up 5.1 percent from 2021, according to Gartner.

There are high expectations that digital market prosperity will continue to boost technology investments.

“2022 is the year that the future returns for the CIO. They are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long term. Simultaneously, staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies,” said John-David Lovelock, Distinguished Research Vice President of Gartner.

The communications services segment is predicted to continue having the highest spending at US$1.4 trillion, albeit growing at a slower pace than enterprise software, which is expected to jump by 11 percent.

Gartner believes that organisations will increasingly rely on external consultants, as the greater urgency and accelerated pace of change widen the gap between organisations’ digital business ambitions and their internal resources and capabilities through to 2025.

“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work. Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years,” said Lovelock.

By 2025, Gartner expects the cloud market to be double the size of the non-cloud market. Cloud accounts for nearly all of spending growth within the enterprise software segment in 2022 as organisations focus on upgrading their software stack to software-as-a-service to support continued flexibility and agility.

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