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Gartner: Worldwide IT spending to grow 5.1% in 2022

High expectations for digital market prosperity will boost technology investments despite potential impacts of the omicron variant

by Marco van der Hoeven

Worldwide IT spending is projected to total $4.5 trillion in 2022, an increase of 5.1% from 2021, according to the latest forecast by Gartner. Despite the potential impacts of the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments.

“2022 is the year that the future returns for the CIO,” said John-David Lovelock, distinguished research vice president at Gartner. “They are now in a position to move beyond the critical, short term projects over the past two years and focus on the long term. Simultaneously, staff skills gaps, wage inflation and the war for talent will push CIOs to rely more on consultancies and managed service firms to pursue their digital strategies.”

Gartner forecasts that the IT services segment – which includes consulting and managed services – is expected to have the second highest spending growth in 2022, reaching $1.3 trillion, up 7.9% from 2021 (see Table 1). Business and technology consulting spending, specifically, is expected to grow 10% in 2022.

Table 1. Worldwide IT Spending Forecast (Millions of US Dollars)

  2021 Spending 2021 Growth (%)   2022 Spending 2022 Growth (%)   2023 Spending 2023 Growth (%)  
Data Centre Systems  

216,337

 

11.4

 

226,475

 

4.7

 

237,021

 

4.7

Enterprise Software 604,946 14.4 671,732 11.0 751,937 11.9
Devices 787,417 13.0 813,699 3.3 804,253 -1.2
IT Services 1,186,103 10.7 1,279,737 7.9 1,391,742 8.8
Communications Services  

 

1,444,324

 

 

3.4

 

 

1,462,712

 

 

1.3

 

 

1,494,167

 

 

2.2

Overall IT 4,239,127 9.0 4,454,354 5.1 4,679,119 5.0

Through 2025, organisations will increase their reliance on external consultants, as the greater urgency and accelerated pace of change widen the gap between organisations’ digital business ambitions and their internal resources and capabilities, according to Gartner.

“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work,” said Lovelock. “Gartner expects the vast majority of large organisations to use external consultants to develop their cloud strategy over the next few years.”

In 2020, within the enterprise application software market, the cloud market became larger than non-cloud market for the first time, due in part to the coronavirus pandemic. By 2025, Gartner expects it to be double the size of the non-cloud market. Cloud is responsible for nearly all of the 11% spending growth within the enterprise software segment in 2022 as organisations focus on upgrading their software stack to software-as-a-service (SaaS) to support continued flexibility and agility.

 

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