Categories Tech News

Global IT spending to rebound 8.4% in 2021: Gartner

After a year of pandemic-fueled declines, IT spending is set to rebound strongly in 2021. In a new forecast, Gartner predicts worldwide IT spending will total $4.1 trillion this year, an increase of 8.4 percent from 2020. Gartner said IT spending decreased 2.2 percent last year “as CIOs prioritized spending on technology and services that were deemed ‘mission-critical’ during the initial stages of the pandemic.”

Last year’s cutback in IT spending could have been much worse. Gartner said “the unprecedented speed of digital transformation in 2020” as companies added technology-driven remote-work solutions “abated the pandemic’s negative effect” toward the end of the year.

Gartner says all five categories of IT spending are set to increase this year. In 2020, four of the five categories were lower. The biggest percentage gain will be in devices, which Gartner projects will grow 14 percent to $755 billion. The communications services category will draw the most IT spending dollars in 2021 — $1.45 trillion, up 4.6 percent from 2020. Looking ahead to 2022, Gartner sees all five IT categories growing by a combined 5.5 percent, translating into IT spending of $4.3 trillion.

2020 spending 2020 growth (%) 2021 spending 2021 growth (%)
Datacenter Systems $219 billion 2.3 $236 billion 7.7
Enterprise Software $466 billion -2.1 $516 billion 10.8
Devices $663 billion -6.9 $755 billion 14.0
IT Services $1.02 trillion -1.8 $1.11 trillion 9.0
Communications Services $1.38 trillion -0.7 $1.45 trillion 4.6
Overall IT $3.75 trillion -2.2% $4.07 trillion 8.4%

SOURCE: GARTNER

Remote work is here to stay, and as it did in 2020, it will attract considerable IT spending in 2021. In an earlier forecast, Gartner said IT spending related to remote work will be $332.9 billion this year, up 4.9 percent from 2020. Specifically, companies are expected to open their IT spending checkbooks for cloud computing projects and cybersecurity to make remote work easier and safer, as some companies adopt a hybrid model combining in-office and remote work.

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.
— John-David Lovelock, distinguished research vice president at Gartner

Even with the increase in IT spending in 2021, Gartner notes that recovery won’t be universal. It says “people-gathering industries” — restaurants, hospitality, travel, and entertainment — “will hover at the bottom long-term.” But Gartner expects banking, securities, and insurance IT spending “will closely resemble pre-pandemic levels” by the end of this year.

Featured image: Shutterstock

Peter King

Peter King has been Managing Editor at TechGenix since July 2016. As a technology editor, reporter, and columnist, he has worked at some of the biggest U.S. newspapers, where he directed coverage of breaking news stories and steered award-winning projects from conception to publication.

Share
Published by
Peter King

Recent Posts

Disaster recovery in a Kubernetes system: Best practices and solutions

Kubernetes disaster recovery is not an easy job because of the application’s sheer complexity. Here…

11 hours ago

Unable to connect to Public Folder after Database Portability in Exchange 2013

Sponsored by Stellar Data RecoveryHere are solutions to connect a disconnected Exchange 2013 Public Folder…

15 hours ago

Troubleshooting PowerShell Direct errors

PowerShell Direct normally works the way it is supposed to, but things can go wrong.…

18 hours ago

Exchange Server hack aftermath: How to update while running Symantec

The major Exchange Server hack uncovered in March has admins scrambling to update their systems.…

1 day ago

7 red-hot trends in the serverless and low-code space

Along with serverless architecture, the low-code approach is reducing costs and boosting productivity. Here are…

2 days ago

Creating a Microsoft 365 cloud policy configuration

IT pros can now use the Microsoft 365 Office cloud policy service on devices that…

2 days ago