Global IT spending to total over US$4 trillion in 2023: Gartner

According to the latest forecast by Gartner Inc., worldwide information technology spending is set to grow by 2.4 per cent, totaling US$4.5 trillion in 2023. This is down from Gartner’s previous quarter’s forecast of 5.1 per cent growth.

Spending in software and IT services are projected to increase by 9.3 per cent and 5.5 per cent, respectively, in 2023. End-user hardware spending, in contrast, is forecast to plummet as both consumers and enterprises defer device upgrades.

“During the height of the pandemic, employees and consumers had technology refreshes of tablets, laptops and mobile phones due to remote work and education,” said John-David Lovelock, VP analyst at Gartner. “Without a compelling reason for an upgrade, device assets are being used longer and the market is suffering.”

While inflation continues to weaken consumer purchasing power, and contribute to layoffs in business to consumer (B2C) enterprises, IT spending is expected to keep up its momentum, in spite of an impending recession.

Furthermore, as software spend goes up, the IT services market is growing, and companies are looking to bring in outside IT staff for implementation and support. Spending on consulting is expected to reach US$264.9 billion in 2023, a 6.7 per cent increase from 2022.

“CIOs are losing the competition for talent,” said Lovelock. “IT services spending is growing more quickly than internal services in every industry. Skilled IT workers are migrating away from the enterprise CIO towards technology and service providers (TSPs) who can keep up with increased wage requirements, development opportunities and career prospects.”

Would you recommend this article?

Share

Thanks for taking the time to let us know what you think of this article!
We'd love to hear your opinion about this or any other story you read in our publication.


Jim Love, Chief Content Officer, IT World Canada

Featured Download

Ashee Pamma
Ashee Pamma
Ashee is a writer for ITWC. She completed her degree in Communication and Media Studies at Carleton University in Ottawa. She hopes to become a columnist after further studies in Journalism. You can email her at [email protected]

Featured Articles

Cybersecurity in 2024: Priorities and challenges for Canadian organizations 

By Derek Manky As predictions for 2024 point to the continued expansion...

Survey shows generative AI is a top priority for Canadian corporate leaders.

Leaders are devoting significant budget to generative AI for 2024 Canadian corporate...

Related Tech News

Tech Jobs

Our experienced team of journalists and bloggers bring you engaging in-depth interviews, videos and content targeted to IT professionals and line-of-business executives.

Tech Companies Hiring Right Now