Worldwide IT spending is projected to total $4.2 trillion in 2021, an increase of 8.6% from 2020, according to the latest forecast by Gartner.
Even as many companies still suffer revenue declines, IT spending is accelerating ahead of revenue expectations, it stated.
Boards and CEOs are much more willing to invest in technology that has a clear tie to business outcomes, and less so for everything else, it added.
"Technology spending is entering a new build budget phase," remarked John David Lovelock, distinguished research vice president at Gartner.
"CIOs are looking for partners who can think past the digital sprints of 2020 and be more intentional in their digital transformation efforts in 2021. This means building technologies and services that don’t yet exist, and further differentiating their organization in an already crowded market," he stated.
According to Gartner, the IT services segment is among the top three highest growth areas for 2021 primarily due to a boost in infrastructure-as-a-service spending that supports mission critical workloads and avoids high on-premises costs.
The IT services segment is forecast to total $1.2 trillion in 2021, an increase of 9.8% from 2020, stated the leading research and advisory company.
Lovelock pointed out that digital transformation could no longer be purchased overnight, and global IT spending projections reflect that.
"As the world continues to open back up, enterprises will invest in tools that support innovation, anywhere operations and employee productivity and trust," he added.
Copyright 2021 Al Hilal Publishing and Marketing Group