Gartner Forecasts Worldwide IT Spending to Reach $4.4 Trillion in 2022
What is the Gartner forecast? In a recent study, Gartner has revealed that global IT spending will reach $4.4 trillion in 2022, a four percent increase from the last year. The study has stated that IT investments will grow steadily despite talent shortages, supply chain issues, inflation, and geopolitical description.
In 2020, global IT spending plummeted due to the pandemic. However, the IT industry’s investments in analytics, cloud computing, improvement of customer experience, and data security will skyrocket by the end of this year.
Rising hiring costs and global talent shortage
IT companies around the globe have been increasing their products and services costs to accommodate the rising cost of hiring talent due to the global talent shortage in the industry. As per the forecast, global software spending will increase by 9.8 percent in 2022 compared to 2021. The expenditure on IT services will increase by 6.8 percent in 2022.
Increasing hiring costs and global talent shortage
As per the industry leaders, this trend will stay around for a long time as there has been a rise in demand for enterprise application software, infrastructure software, and managed services across various industries.
Will Russia’s invasion of Ukraine have any effect on global IT spending?
According to Gartner, the Russia-Ukraine conflict will not directly impact global IT spending. Factors like talent shortage and wage inflation may negatively impact the trend. However, there won’t be a slow down in IT spending.
Will Covid affect global IT spending?
As per the study, much of the IT spending was stagnant because of the omicron variant. However, companies will now proceed with their IT investments as the tension around Covid dissipates globally.
Summary
The global IT industry is booming. Even with the minor inconveniences, global IT spending will increase steadily. As per the forecast, we can expect the industry to grow by 5.5 percent in 2023 compared to 2022. CIOs will have to take the risk of spending more for a better long-term return. The global talent shortage will result in more spending, but choosing the right talent will result in better returns.
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