IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Global IT spending to grow 8.6% in 2021, says Gartner

This year’s spending growth is now 3.4% higher than expected

Global IT spending is expected to increase by 8.6%, from $3.8 trillion (£2.7 trillion) in 2020 to $4.2 trillion (£3 trillion) in 2021.

That's according to the latest forecast by Gartner, which found that IT spending is accelerating ahead of revenue expectations.

At the beginning of 2021, the global research and advisory firm predicted that global  IT spending would rise by 6.2% to a total of $3.9 trillion (£2.85 trillion) in 2021 before surpassing the $4 trillion (£2.93 trillion) mark in 2022.

However, according to new findings, 2021’s spending growth is now 3.4% higher, with the $4 trillion mark expected to be surpassed a year earlier than expected.

According to the analyst house, this is due to boards and CEOs being increasingly willing to invest in technology that has a clear tie to business outcomes. An example of such is this year’s 13.2% growth in enterprise software spending and 13.9% increase in device purchases, with the latter having suffered a 1.5% decline in 2020.

The IT services segment was found to be the third-highest growth area for 2021, forecast to increase by 9.8% from 2020 to a total of $1.2 trillion (£870 million). This was largely driven by a boost in infrastructure as a service spending with an emphasis on mission-critical workloads.

According to Gartner’s research vice president John-David Lovelock, “technology spending is entering a new build budget phase”.

CIOs are looking for partners who can think past the digital sprints of 2020 and be more intentional in their digital transformation efforts in 2021. This means building technologies and services that don’t yet exist, and further differentiating their organisation in an already crowded market.”

Earlier this year, Gartner said 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.

On Wednesday, Lovelock said that “digital transformation can no longer be purchased overnight, and global IT spending projections reflect that".

"As the world continues to open back up, enterprises will invest in tools that support innovation, anywhere operations and employee productivity and trust,” he added.

Featured Resources

What 2023 will mean for the industry

What do most IT decision makers really think will be the important trends and challenges in the coming year?

Free Download

2022 Magic quadrant for Security Information and Event Management (SIEM)

SIEM is evolving into a security platform with multiple features and deployment models

Free Download

IDC MarketScape: Worldwide unified endpoint management services

2022 vendor assessment

Free Download

Magic quadrant for application performance monitoring and observability

Enabling continuous updating of diverse & dynamic application environments

View Now

Most Popular

Dutch hacker steals data from virtually entire population of Austria
data breaches

Dutch hacker steals data from virtually entire population of Austria

26 Jan 2023
GTA V vulnerability exposes PC users to partial remote code execution attacks
vulnerability

GTA V vulnerability exposes PC users to partial remote code execution attacks

23 Jan 2023
European partners expect growth this year, here are three ways they will achieve it
Sponsored

European partners expect growth this year, here are three ways they will achieve it

17 Jan 2023