According to a recent report by Gartner, the global investment in IT is projected to touch $4.4 trillion in 2022, marking an increase of 4% compared to the previous year. Despite the current challenges of skill shortages, supply chain disruptions, inflation, and political uncertainties, the survey reveals that IT expenses are expected to hold steady.
As a result of the COVID-19 pandemic, it is expected that the global spending on information technology (IT) will drop in 2020. However, by the end of this year, the IT sector is predicted to witness a substantial surge in investments towards analytics, cloud computing, customer engagement, and data security.
Global shortage of skills and an increase in hiring costs
To tackle the scarcity of talent in the IT sector, companies across the world have raised their prices for products and services. As per projections, in 2022, there is expected to be a surge of 9.8% in global spending on software, and a 6.8% rise in IT services spending compared to the previous year.
As per industry experts, there is a considerable demand for managed services, infrastructure software, and corporate application software across various sectors, which is expected to remain high for an extended period.
Impact of Russia’s invasion of Ukraine on global IT spending
As per Gartner, a prominent research and advisory firm, the ongoing crisis between Russia and Ukraine is unlikely to have a negative impact on global IT spending. Although some factors such as labour shortages and wage inflation have the potential to cause a setback, spending on IT is not projected to decrease.
Effect of Covid on global IT spending
As a consequence of the Omicron Variant, reports reveal that IT investment has experienced limited growth. However, as the world recovers from the Covid-19 pandemic, companies are projected to push ahead with their investments in IT.
Summary
Despite minor fluctuations, the global IT industry is steadily growing. As per estimates, there is a 5.5 percent rise in global IT spending projected for 2023 compared to the previous year. CIOs are encouraged to take calculated risks and increase expenditure to maximize ROI. Meanwhile, due to the current skills shortage, there is a need for more investment. However, by making informed personnel selections, better outcomes can be achieved.
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