Gartner, Inc.’s most recent forecasting says global expenditure on information technology would rise to $4.7 trillion in 2023, a 4.3% increase from 2022.
As IT managers continue to struggle to attract and retain top IT skill sets they are redirecting budgets towards technologies that promote automation and efficiency, allowing them to achieve the same level of growth with less workforce.
John-David Lovelock, Distinguished VP Analyst at Gartner, has said, “Digital business transformations are starting to morph.” The goal of IT initiatives is moving inward, from generating external benefits like greater revenue and improved customer experiences to enhancing internal processes through optimization.
In 2023, the software market is expected to expand by double digits as businesses increase their use of, and reallocation of resources to, key applications and platforms that provide efficiency improvements. Spending on software is expected to rise this year due in part to price hikes from vendors.
“The devices segment is experiencing one of its worst growth years on record,” added Lovelock. While inflation has slowed in certain parts of this globe, overall macroeconomic considerations are still having a chilling effect on consumer spending and extending the time between gadget upgrades. Spending on devices is not likely to return to 2021 levels until 2026.
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Enterprises Will Incorporate Generative AI Through Existing Tools
Numerous leaders in the business and technology sectors have generative AI at the forefront of their attention, but it has not yet had a major influence on IT budgets. Over time, companies will integrate generative AI within preexisting budgets.
According to Lovelock, “the best route to market for generative AI is through the software, hardware, and services that organizations are already utilizing.” The technology industry is constantly evolving, with new features being introduced to goods and services every year. Most businesses will gradually adopt generative AI by incorporating it into existing IT infrastructure via the use of updated tools.
It’s true that businesses won’t need to have AI running in production this year to be successful, but Lovelock insists that without an elevator pitch and strategic plan, they won’t have a chance.
It is the comprehensive study of sales by over a thousand vendors across the whole spectrum of IT goods and services that forms the backbone of Gartner’s IT expenditure prediction methodology. To create its projection, Gartner compiles data on market size from a variety of sources, including primary and secondary research.
Whether it’s hardware, software, IT services, or telecommunications, the Gartner quarterly IT expenditure prediction has it covered. The data gathered in these analyses is useful for Gartner clients in assessing market opportunities and threats. For the most up-to-date information on projected IT expenditures, Gartner clients can refer to the “Gartner Market Databook, 2Q23 Update.”