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According to Gartner's latest forecast, global IT spending is expected to reach $4.
1 trillion in 2021, up 8.
4%
from 2020.
The new digital business initiative will be funded more from business units outside of IT and charged
in the form of cost of revenue or cost of goods sold (COGS).
According to Gartner, the fastest growth will come from devices (14%) and enterprise software (10.
8%).
Shift the focus for businesses to providing a more comfortable, innovative and productive environment for their employees
.
John-David Lovelock, vice president of distinguished research at Gartner, said: "IT is no longer supporting business operations as it has traditionally been, but is fully involved in the delivery
of business value.
”
"This not only shifts IT from a back-office role to a business unit, but it also shifts the source of funding from maintenance, monitoring and sometimes cuts of overhead into a factor
that drives revenue," he said.
”
The growing focus on employee experience and well-being is driving technology investments in areas such as social software and collaboration platforms, as well as human capital management (HCM) software
.
While optimization and cost-saving efforts won't disappear just because of economic certainty in 2021, CIOs throughout the year
Lovelock said that last year, in response to the pandemic, IT spending took on a new momentum to enable remote employees to work
in a matter of weeks.
"As hybrid efforts unfold, CIOs will focus on spending to enable innovation, not just getting things
done.
"
Recovery still varies widely across countries, verticals and the IT sector, triggering a K-shaped economic recovery
.
From an industry perspective, banking, securities and insurance spending will return to pre-pandemic levels as early as 2021, while retail and transportation will not see the same recovery
until 2023, the report said.
Regionally, Latin America is expected to recover in 2024, while Greater China has already surpassed 2019 IT spending levels
.
Both North America and Western Europe are expected to return to pre-pandemic levels
by the end of 2021.
According to Gartner's latest forecast, global IT spending is expected to reach $4.
1 trillion in 2021, up 8.
4%
from 2020.
The new digital business initiative will be funded more from business units outside of IT and charged
in the form of cost of revenue or cost of goods sold (COGS).
According to Gartner, the fastest growth will come from devices (14%) and enterprise software (10.
8%).
Shift the focus for businesses to providing a more comfortable, innovative and productive environment for their employees
.
John-David Lovelock, vice president of distinguished research at Gartner, said: "IT is no longer supporting business operations as it has traditionally been, but is fully involved in the delivery
of business value.
”
"This not only shifts IT from a back-office role to a business unit, but it also shifts the source of funding from maintenance, monitoring and sometimes cuts of overhead into a factor
that drives revenue," he said.
”
The growing focus on employee experience and well-being is driving technology investments in areas such as social software and collaboration platforms, as well as human capital management (HCM) software
.
While optimization and cost-saving efforts won't disappear just because of economic certainty in 2021, CIOs throughout the year
Lovelock said that last year, in response to the pandemic, IT spending took on a new momentum to enable remote employees to work
in a matter of weeks.
"As hybrid efforts unfold, CIOs will focus on spending to enable innovation, not just getting things
done.
"
Recovery still varies widely across countries, verticals and the IT sector, triggering a K-shaped economic recovery
.
From an industry perspective, banking, securities and insurance spending will return to pre-pandemic levels as early as 2021, while retail and transportation will not see the same recovery
until 2023, the report said.
Regionally, Latin America is expected to recover in 2024, while Greater China has already surpassed 2019 IT spending levels
.
Both North America and Western Europe are expected to return to pre-pandemic levels
by the end of 2021.
