Enterprise software to lead IT spending rebound in 2021

Gartner expects global IT spending to rise by 6.2% this year following a slump in 2020

Enterprise software is expected to grow by 8.8% in 2021 as businesses seek to expand and improve remote work environments, according to new predictions from Gartner.

Global IT spending fell by 3.2% in 2020 as a result of the COVID pandemic, but the research firm expects spending this year to rise by 6.2% to a total of $3.9 trillion (£2.85 trillion) before surpassing the $4 trillion (£2.93 trillion) mark in 2022.

Enterprise software is expected to witness the strongest rebound followed by the devices segment, which is expected to see growth of 8% in 2021. Garner expects spending on data centre systems to increase by 6.2% during the 12-month period, while IT and communications services are predicted to grow by 6% and 4% respectively. 

Commenting on the predictions, Gartner distinguished research VP John-David Lovelock said that CIOs “have a balancing act to perform in 2021 — saving cash and expanding IT”.

“With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short Time to Value, will get more money and board-level attention going into 2021,” he added.

Gartner also projects that, through 2024, businesses will be forced to accelerate their digital transformation plans by at least five years in order to survive in a post-COVID world, where remote work and digital touchpoints will be the norm.

“Digital business represents the dominant technology trend in late 2020 and early 2021 with areas such as cloud computing, core business applications, security and customer experience at the forefront,” said Lovelock. 

“Optimisation initiatives, such as hyperautomation, will continue and the focus of these projects will remain on returning cash and eliminating work from processes, not just tasks.”

Moreover, non-COVID-19 geopolitical factors are expected to inhibit recovery for some regions, such as Brexit for the UK and the difficult China-US relations.

Featured Resources

How to be an MSP: Seven steps to success

Building your business from the ground up

Download now

The smart buyer’s guide to flash

Find out whether flash storage is right for your business

Download now

How MSPs build outperforming sales teams

The definitive guide to sales

Download now

The business guide to ransomware

Everything you need to know to keep your company afloat

Download now

Recommended

What is digital transformation?
Business strategy

What is digital transformation?

1 Dec 2020
The total economic impact of Nutanix for end user computing
Whitepaper

The total economic impact of Nutanix for end user computing

10 May 2021
Does your business need a digital twin?
digital transformation

Does your business need a digital twin?

30 Apr 2021
Seven steps to successful digital innovation and transformation
Whitepaper

Seven steps to successful digital innovation and transformation

30 Apr 2021

Most Popular

KPMG offers staff 'four-day fortnight' in hybrid work plans
flexible working

KPMG offers staff 'four-day fortnight' in hybrid work plans

6 May 2021
16 ways to speed up your laptop
Laptops

16 ways to speed up your laptop

29 Apr 2021
How to move Windows 10 from your old hard drive to SSD
operating systems

How to move Windows 10 from your old hard drive to SSD

30 Apr 2021