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Gartner’s research found that global IT spending is projected to reach $4.5 trillion in 2022. IT spending is expected to grow much slower than in 2021 but will still witness an increase of 3% in 2022 compared to last year.
The research has also found that the CIOs’ investment plans will not be affected by inflation.
“Inflation is top of mind for everyone. Central banks around the world are focusing on fighting inflation, with overall inflation rates expected to be reduced through the end of 2023. However, the current levels of volatility being seen in both inflation and currency exchange rates is not expected to deter CIOs’ investment plans for 2022,” said John-David Lovelock, distinguished research vice president at Gartner.
“Organizations that do not invest in the short term will likely fall behind in the medium term and risk not being around in the long term,” he added.
The study has revealed “spending cutbacks on PCs, tablets, and printers by consumers, causing spending on devices to shrink 5% worldwide.”
Gartner forecasts robust growth of 11.1 percent in all data center segments this year. Cloud consulting and implementation and cloud-managed services are likely to grow 17.2% in 2022, from $217 billion in 2021 to $255 billion in 2022, helping to drive the overall IT services segment to 6.2% growth in 2022, Gartner wrote in its report.
The global software market is also expected to see a spending increase and is forecast to reach $1.3 trillion.
“Technology service providers are increasing prices on IT to allow for competitive salaries. This is driving increased spending on software and services through 2022 and 2023. Worldwide software spending is expected to grow 9.6% to $806.8 billion in 2022, and global spending on IT services is forecast to reach $1.3 trillion,” the report read.
The report mentioned that the IT talent crunch was becoming one of the significant factors affecting spending. The Gartner Global Labor Market Survey of nearly 18,000 employees in the first quarter of 2022 showed compensation is the No. 1 driver for IT talent attraction and retention.
“Additionally, CIOs are using more IT services to assist in the lack of skilled IT staff. Tasks that require lower skill sets tend to be outsourced to managed service firms to alleviate staff time, while critical strategy work, which requires high-end skills unobtainable by many enterprises, will increasingly be fulfilled by external consultants,” said Lovelock.