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Do Global Trends Impact Tech Spending?

With a rise in inflation, global geopolitical conflict, labor shortages, and supply-chain disruptions, have we finally reached the impetus where technology is no longer optional, and companies must now accelerate investments to remain nimble in a competitive market? One analyst firm recently threw its forecast in the ring for what’s coming next with technology.

Earlier this month, Gartner predicted worldwide IT spending will reach $4.4 trillion in 2022. It anticipates we will see the rise of enterprise application software, infrastructure software, and managed services in the near and long term and suggests the trend toward digital transformation is not a one- or two-year trend. Rather it is systemic and long-term. For example, IaaS (infrastructure as a service) underpins every major offering, accounting for a significant portion of the almost 10% growth in software spending in 2022.

Let’s take a closer look at Gartner’s predictions for how today’s trends will impact spending on technology.

The Russian invasion of Ukraine

The analyst firm does not expect the geopolitical conflict to have a direct impact on global IT spending, according to its recent analysis.

Labor Shortage

Gartner says talent shortages and other delivery uncertainties are expected to be greater impingements on CIOs’ plans in 2022 but will not slow down technology investments.

Supply Chain

Optimization of supply chain will push spending on enterprise applications and infrastructure software into double-digit growth in 2023.

Inflation Impact

Inflation impacts on IT hardware from the past two years are starting to dissipate and spill into software and services. Technology service providers are increasing prices, which is increasing spending growth in both software and IT services.

The Rise of Digital Business

Gartner expects digital business initiatives such as experiential end-consumer experience to drive spending on applications through 2023.

While these are a few predictions, one thing is for sure. We are in the perfect storm, where we need greater efficiency than ever before. We need to work smarter, not harder, as the saying goes. And, perhaps, the solution lies in technology. What are your thoughts?

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