Gartner, the world’s leading information technology research and consulting company, predicts that total global IT spending will reach US$4.1 trillion in 2021, an increase of 8.4% compared to 2020.
Business units other than IT will provide funding for new digital business solutions more frequently, and this funding will be recorded as cost of revenue or cost of goods sold (COGS).
John-David Lovelock, Vice President of Gartner, said: “The IT department no longer only supports enterprise operations as before, but will fully participate in the creation of business value. This not only transforms IT from a back-office department to a front-line business department, but also sources of the funding It will also shift from administrative expenses that are controlled, supervised, and sometimes even cut, to expenses that drive revenue.”
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From now to 2022, all IT spending segments are expected to resume growth (see Table 1). As companies shift their focus to providing employees with a more comfortable, innovative, and efficient environment, equipment (14%) and enterprise software (10.8%) will become the fastest-growing market segments.
For example, technological investment in areas such as social software and collaboration platforms, and human capital management (HCM) software is moving forward due to the increasing importance of corporate organizations on employee experience and physical and mental health.
Although corporate organizations will not reduce optimization and cost-saving efforts just because of the improved economic certainty in 2021, for the rest of this year, CIOs will focus on completing enhancements, expansions, and changes to the company’s value Positioning on the digital business plan.
Mr. Lovelock said: “Last year, IT expenditures had a conditional reflex’, allowing remote work teams to take shape in just a few weeks. As the hybrid work model took root, in addition to the expenditure required for task completion, the chief executive The information officer will also pay attention to the expenditures that enable innovation.”
The speed of recovery to pre-epidemic spending levels varies
The recovery situation of different countries, vertical industries, and IT market segments still differ greatly, and the overall economic recovery shows a K-shaped trend. In terms of industries, the banking and securities and insurance industries will approach the pre-epidemic spending levels as early as 2021; the retail and transportation industries will not be able to return to this level until 2023.
In terms of regions, Latin America is expected to recover in 2024, while IT spending in Greater China has exceeded 2019 levels. It is expected that North America and Western Europe will recover towards the end of 2021.
