Gartner has cut its forecast for growth in worldwide IT spending by more than 50%, down from 5.1% in the previous quarter. Despite this, enterprise spending on software and services is expected to remain strong, with software predicted to increase by 9.3% and IT services by 5.5%.
Inflation is the main reason for the decline in spending on devices, with a 5.1% drop forecast for 2023. Data centre systems are expected to grow by a modest 0.7%, while communications services are likely to increase by 0.1%.
“Consumers and enterprises are facing very different economic realities,” John-David Lovelock, distinguished VP Analyst at Gartner, stated. “While inflation is devastating consumer markets, contributing to layoffs at B2C companies, enterprises continue to increase spending on digital business initiatives despite the world economic slowdown.”
Overall, worldwide IT spending is expected to total $4.5 trillion in 2023, an increase of 2.4% from 2022. It’s positive to see businesses remain committed to long-term goals, understanding that increased productivity and efficiency requires ongoing IT investments.
Originally reported by Martech: https://martech.org/enterprise-it-remains-bright-amid-gloomy-tech-spending-forecast/
This article was written automatically by artificial intelligence. Please make us aware if you have any concerns about this automatically generated content.
