Gartner predicts increase in IT spending despite economy — highlights new trends

by | Oct 19, 2022 | Technology

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Gartner will discuss this and other IT trends with CIOs and other IT executives at its Gartner IT Symposium/Xpo 2022 being held this week.

“Enterprise IT spending is recession-proof as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,” said John-David Lovelock, distinguished VP analyst at Gartner.

Focus on software, de-emphasize devices

Economic turbulence changes the context for technology investments, Lovelock explained — increasing spending in some areas while accelerating declines in others. However, it is not projected to materially impact the overall level of enterprise technology spending.

Gartner’s latest research predicts that: 

Software spending will grow by 11.3%IT services spending will grow by 7.9%Data center systems will grow by 3.4%Communication services will grow by 2.4%By contrast, device spending will decrease by .6%. 

There is sufficient spending within data center markets to maintain existing on-premises data centers, the firm says, but new spending continues to shift to cloud options. 

Companies will use digital technology to reshape revenue streams, add new products and services, change the cash flow of existing products and services as well as change value propositions for existing products and services, Gartner claims. 

“This trend has fed the shift from buying technology to building, composing and assembling technology to meet specific business drivers,” Lovelock said. 

It is also foundational to the growth of cloud over on-premises for new IT spending, he said. Back-office and operational needs in other departments are also being added to digital transformation project lists. 

Digital transformation goals not yet realized

Today, Gartner also released the findings of a survey of boards of directors, gauging their digital mindsets and trends within their organizations. 

Interestingly, CEOs are considered the primary leader responsible for driving di …

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