Global IT spending set to top $3.9 trillion in 2020
Despite challenging market conditions, a new report suggests that sales will be buoyed by strong software sales
Global spending in the Information Technology sector is projected to jump to $3.9 trillion in 2020, an increase of 3.4 per cent on last year’s figures.
A new report by Gartner suggests that spending will continue to grow, topping $4 trillion mark by 2021.
“Although political uncertainties pushed the global economy closer to recession, it did not occur in 2019 and is still not the most likely scenario for 2020 and beyond,” said John-David Lovelock, distinguished research vice president at Gartner.
“With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting.”
The report predicts double digit growth in spending for software in 2020, which is set to increase by 10.5 per cent.
“Almost all of the market segments with enterprise software are being driven by the adoption of software as a service (SaaS),” said Mr. Lovelock. “We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. SaaS is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023.”
The report also predicts that growth in enterprise IT spending for cloud-based offerings will outstrip growth in traditional, non-cloud IT offerings through 2022.
“Last quarter, we introduced the ‘and’ dilemma where enterprises are challenged with cutting costs and investing for growth simultaneously. Maturing cloud environments is an example of how this dilemma is alleviated: Organisations can expect a greater return on their cloud investments through cost savings, improved agility and innovation, and better security. This spending trend isn’t going away anytime soon,” Lovelock concluded.