Gartner: Worldwide IT Spending to Reach $4 Trillion in 2021
April 08, 2021
Share this

Worldwide IT spending is projected to total $4.1 trillion in 2021, an increase of 8.4% from 2020, according to the latest forecast by Gartner.

The source of funds for new digital business initiatives will more frequently come from business departments outside IT and charged as a cost of revenue or cost of goods sold (COGS).

“IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery,” said John-David Lovelock, Distinguished Research VP at Gartner. “Not only does this shift IT from a back-office role to the front of business, but it also changes the source of funding from an overhead expense that is maintained, monitored and sometimes cut, to the thing that drives revenue.”

All IT spending segments are forecast to have positive growth through 2022. The highest growth will come from devices (14%) and enterprise software (10.8%) as organizations shift their focus to providing a more comfortable, innovative and productive environment for their workforce.

As one example, the increased focus on the employee experience and well-being are propelling technology investments forward in areas such as social software and collaboration platforms and human capital management (HCM) software.

Although optimization and cost savings efforts won’t disappear simply because there’s more economic certainty in 2021, the focus for CIOs through the remainder of the year will be completing the digital business plans that are aimed at enhancing, extending and transforming the company’s value proposition.

“Last year, IT spending took the form of a ‘knee jerk’ reaction to enable a remote workforce in a matter of weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion,” said Mr. Lovelock.

Recovery across countries, vertical industries and IT segments still varies significantly, prompting a K-shape economic recovery. From an industry perspective, banking and securities and insurance spending will closely resemble pre-pandemic levels as early as 2021, while retail and transportation won’t see the same recovery until closer to 2023.

Regionally, Latin America is expected to recover in 2024, while Greater China has already surpassed 2019 IT spending levels. North America and Western Europe are both expected to recover in late 2021.

Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of sales by thousands of vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.

Share this

The Latest

January 18, 2022

As part of APMdigest's list of 2022 predictions, industry experts offer thoughtful, insightful, and often controversial predictions on how Network Performance Management (NPM) and related technologies will evolve and impact business in 2022 ...

January 13, 2022

Gartner highlighted 6 trends that infrastructure and operations (I&O) leaders must start preparing for in the next 12-18 months ...

January 11, 2022

Technology is now foundational to financial companies' operations with many institutions relying on tech to deliver critical services. As a result, uptime is essential to customer satisfaction and company success, and systems must be subject to continuous monitoring. But modern IT architectures are disparate, complex and interconnected, and the data is too voluminous for the human mind to handle. Enter AIOps ...

January 11, 2022

Having a variety of tools to choose from creates challenges in telemetry data collection. Organizations find themselves managing multiple libraries for logging, metrics, and traces, with each vendor having its own APIs, SDKs, agents, and collectors. An open source, community-driven approach to observability will gain steam in 2022 to remove unnecessary complications by tapping into the latest advancements in observability practice ...

January 10, 2022

These are the trends that will set up your engineers and developers to deliver amazing software that powers amazing digital experiences that fuel your organization's growth in 2022 — and beyond ...

January 06, 2022

In a world where digital services have become a critical part of how we go about our daily lives, the risk of undergoing an outage has become even more significant. Outages can range in severity and impact companies of every size — while outages from larger companies in the social media space or a cloud provider tend to receive a lot of coverage, application downtime from even the most targeted companies can disrupt users' personal and business operations ...

January 05, 2022

Move fast and break things: A phrase that has been a rallying cry for many SREs and DevOps practitioners. After all, these teams are charged with delivering rapid and unceasing innovation to wow customers and keep pace with competitors. But today's society doesn't tolerate broken things (aka downtime). So, what if you can move fast and not break things? Or at least, move fast and rapidly identify or even predict broken things? It's high time to rethink the old rallying cry, and with AI and observability working in tandem, it's possible ...

January 04, 2022

AIOps is still relatively new compared to existing technologies such as enterprise data warehouses, and early on many AIOps projects suffered hiccups, the aftereffects of which are still felt today. That's why, for some IT Ops teams and leaders, the prospect of transforming their IT operations using AIOps is a cause for concern ...

December 16, 2021

This year is the first time APMdigest is posting a separate list of Remote Work Predictions. Due to the drastic changes in the way we work and do business since the COVID pandemic started, and how significantly these changes have impacted IT operations, APMdigest asked industry experts — from analysts and consultants to users and the top vendors — how they think the work from home (WFH) revolution will evolve into 2022, with a special focus on IT operations and performance. Here are some very interesting and insightful predictions that may change what you think about the future of work and IT ...

December 15, 2021

Industry experts offer thoughtful, insightful, and often controversial predictions on how APM, AIOps, Observability, OpenTelemetry, and related technologies will evolve and impact business in 2022. Part 6 covers the user experience ...