Worldwide IT spending will reach $4.5 trillion next year, an increase of 5.5 percent from 2021, as companies continue to reinvent and implement hybrid work arrangements, according to the latest data released on Sunday.
The biggest chunk of the global spend will go to communications services, estimated to reach nearly $1.5 trillion, followed by IT services at $1.29 trillion, research firm Gartner said.
The most notable increase in spending will be posted by enterprise software, which is projected to see a growth of 11.5 percent next year compared to 2021, driven by infrastructure software spending.
However, enterprises will increasingly build new technologies and software, rather than buy and implement them, according to John-David Lovelock, research vice president at Garner.
“[But] digital tech initiatives remain a top strategic business priority for companies as they continue to reinvent the future of work, focusing spending on making their infrastructure bulletproof and accommodating increasingly complex hybrid work for employees going into 2022.”
Where the money goes
This year, a significant portion of budgets went to devices, which recorded spending growth of 15.1 percent, driven by pandemic-driven trends like remote work, tele health and remote learning.
Next year, Garner said it expects to see an uptick in enterprises that upgrade devices or invest in multiple devices to support a hybrid work setting.
Total spending on devices is forecast to grow 2.3 percent to $820 billion in 2022, the third-highest outlay for the year.
Enterprise software spending will jump by 11.5 percent to $669 billion, while data centre systems will account for more than $207 billion of expenses, up by 5.8 percent from 2021.
“What changed in 2020 and 2021 was not really the technology itself, but people’s willingness and eagerness to adopt it and use it in different ways,” said Lovelock.
“In 2022, CIOs need to reconfigure how work is done by embracing business composability and the technologies that accommodate asynchronous workflows.”
(Reporting by Cleofe Maceda; editing by Mily Chakrabarty)
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