Global IT (information technology) spending is projected to hit $3.9 trillion in 2020, an increase of 3.4% from 2019, according to a report by technology research firm Gartner.
Researchers at Gartner believe political uncertainties pushed the global economy closer to a recession. Although the economy recovered somewhat, markets could still be volatile in 2020 and beyond. This could also affect future IT spending.
“With the waning of global uncertainties, businesses are redoubling investments in IT as they anticipate revenue growth, but their spending patterns are continually shifting,” John-David Lovelock, research vice president at Gartner said in a statement.
Gartner predicts software to be among the fastest-growing major market with double-digit growth of 10.5%, compared to 8.5% growth in 2019. The growth is expected because of the adoption of SaaS (software as a service), as it is driving the enterprise software market.
“We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. SaaS(software as a service) is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023,” Lovelock said.
The enterprise IT spending is expected to increase through 2022. The report predicts organisations to witness a greater return on their cloud investments through cost savings, improved agility, innovation and better security.
Earlier Gartner had predicted, IT spending in India is expected to hit $94 billion in 2020, which is a 6.6% increase from $88.5 in 2019.
50% of organisations will see business and IT teams join forces
Over the next two years, about 50% of organisations will see business and IT teams joining forces, according to a separate report by technology research firm Gartner.
Companies in the future might see fewer in-house squabbles over the control of technology with the rise of participation between teams, the report, Predicts 2020: The Future of Application Architecture, Development, Integration and Platforms, said.
“Business units and IT teams can no longer function in silos, as distant teams can cause chaos,” Keith Mann, senior research director at Gartner said in a statement.
Mann said organisations now understand that a unified objective is essential to ensure the integrity and stability of core business.
A recent study by Gartner had said that agile enterprises are also more likely to have disciplined IT investment, a clear vision, consistent overall strategy and a strong CIO/CEO relationship.
Gartner had recently said that end-user spending on cloud services in India will increase by 25% to touch $3.4 billion in 2020.