Gartner: Technology spending will grow 9% in 2021
Technology spending is entering a new phase of budgeting.
Gartner has forecast that global spending on information technology will reach $4.2 trillion in 2021, an increase of 8.6% compared to 2020.
“Tech spending is entering a new phase of budgeting, as IT administrators are looking for partners who can think beyond the digital patterns and experiences of 2020 to focus more on the efforts of Gartner,” said John David Lovelock, vice president of research at Gartner. Digital transformation during 2021, which means innovating technologies and services that do not yet exist, and achieving distinction from competition in the crowded and service-rich information technology sector.”
With many companies still suffering from declining revenues, IT spending is accelerating beyond expectations of the revenue it can generate.
Board members and IT administrators are also more willing to invest in technology that clearly correlates with business outcomes.
The IT services sector, for example, is among the top three areas of growth during 2021, mainly as a result of increased spending on infrastructure as a service that supports critical business tasks and avoids the high costs of doing business on the premises.
Total IT services spending is expected to reach $1.2 trillion in 2021, an increase of 9.8% over 2020.
Lovelock added: “Digital transformation can no longer be bought overnight, and global IT spending forecasts clearly reflect this.
As the world continues to recover and open up, many companies will be keen to invest in tools that support innovation and support business concepts from anywhere.”
Gartner's methodology for IT spending forecasts relies on careful analysis of sales made by thousands of suppliers across the entire spectrum of IT products and services.