Gartner, a leading name in the fields of IT research and consultancy, has anticipated a 5.5% growth in the global IT spending during the year 2022. In dollar terms, this growth rate translates into a whopping US $4.5 Trillion.
Within this broad spending figure, expenses on procuring hardware resources will show lackluster growth. On the contrary, spending on enterprise software will exhibit a substantial growth rate of 9.5% during 2022.
The recent spike in IT spending is being fuelled by 2 main factors. Firstly, the top management of enterprises is encouraging a risk taking approach when it comes to adopting new digital technology initiatives across the enterprise.
Board of Directors (BOD) are fine with a “try fast and fail fast” approach towards adoption of digital technologies. This is being done in a bid to improve the overall flexibility and agility of enterprise operations.
Another motivation behind these bold initiatives is to improve the overall risk posture that arises due to disruptive events in the future, on similar lines to a global pandemic. The other factor driving this IT spending is a pivot from remote to hybrid work models.
Given the current work patterns, which are likely to continue in the foreseeable future, enterprises are on the lookout for sound digital technologies, like Cloud Computing, to support remote and hybrid work scenarios in a secure and seamless manner.
In 2022, the majority 58% of respondents, which were primarily board members, declared digital technology initiatives as their top business priority. Another 64% respondents cited a change in enterprise economic structures, with a focus on digitalization.
As per Gartner, the role of IT within the enterprise is elevating from just saving a few bucks here and there, to a full fledge driver of revenue growth and tapping new opportunities. The study also highlighted the trend of building digital solutions in-house.
This runs contrary to the previous trend of buying ready made, standardized digital solutions. By building digitally powered enterprise solutions from the ground-up, enterprises are better able to align their core operations with IT.
Lastly, Gartner also anticipates IT related consultancy companies to perform really well during 2022. This growth will mainly be fuelled by an acute shortage of skilled IT professionals, as enterprises push towards digital initiatives on fast track basis.