A recent study by Gartner revealed that global information technology spending is expected to grow 8.4% to $4.1 trillion in 2021, due to enterprises accelerating their digital transformation plans.
Indeed, digital business plans and initiatives will drive IT spending in 2021. As a result, it is very likely that the source of funding will be charged as a cost of revenue or cost of goods sold (COGS). The source of funding will then change from an overhead expense that is maintained, monitored, and sometimes cut, to the thing that drives revenue.
It was also highlighted that every IT spending category will have positive growth through 2022, with a particular rise in device demand enterprise software. Every category will be increasing in 2021, as businesses focus on having a more comfortable, innovative, and productive environment for their workforce.
Hence, organisations are working to improve areas including social software and collaboration platforms as well as human capital management (HCM) software to make it a better environment for their employees. Besides, organisations will also focus on optimizing costs and other cost-savings efforts, but the IT spending focus will remain on revenue growth.
The study revealed that banks and financial services IT spending will reach 2019 levels as early as 2021. Retail and manufacturing IT spending, on the other hand, will recover at a slower pace, and will not reach pre-pandemic levels before 2023.