With the increased adoption of innovative technologies across businesses, worldwide IT spending will enter a new budget phase in 2021.
Globally, CIOs are looking for business partners who can think past the digital sprints of the previous year and be more intentional around digital transformation efforts in 2021. Simply put, this involves building innovative technologies and services, and further differentiating their company in an already crowded marketplace.
According to a recent Gartner study titled, “The Gartner IT Spending Forecast, 2Q21 Update: Build Budgets Taking Off“, the global IT spending is forecasted to touch a valuation of $4.2 trillion this year. IT is an increase of approximately 8.6% from 2020. Certainly, technology spending is taking up a new build budget phase.
With many companies still suffering or stuck with revenue declines, IT spending is hastening ahead of the overall revenue expectations. It is crucial to understand market challenges and opportunities as Boards and CEOs are highly interested in investing in advanced technology – which has a clear tie to business results and less of that other aspects.
For instance, the IT services segment is among the top highest growth spaces for 2021. This is primarily due to a boost in infrastructure-as-a-service spending which supports mission-critical workloads and dodges high on-premises costs. Indeed, the IT services segment is projected to touch $1.2 trillion in 2021 – a surge of 9.8% YOY.
Basically, digital transformation cannot be purchased overnight, and the worldwide IT spending projections reflect that. As explained by John-David Lovelock, distinguished research VP at Gartner, “As the world continues to open back up; enterprises will invest in tools that support innovation, anywhere operations and employee productivity and trust.”
The study is focused on different analyses of sales spanning the entire range of IT products and services. At present, the industry experts suggest that businesses need to make faster and smarter decisions along with generating more robust performance. This can be achieved by reinventing where, when, and how to work in this uncertain marketplace.
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Clearly, this year marks the overall modification of technology strategies, data-driven research, and shaping of current IT budgets. While some industries continue to experience revenue declines, IT spending will somehow rise ahead of income expectations. However, this steep acceleration will be rough (as the global market fallout) due to the pandemic.
Businesses closely track their IT spending across various segments like IT services, hardware, software, and telecommunications. IT professionals need to rely on the overall industry insights to understand better how their organizations can adopt IT operations to overcome the increasing challenges while advancing operational efficiency.