IT spending set to rebound this year to $4tn

Devices set to be fastest growing segment in 2021 according to Gartner

IT spending is set to rebound in 2021 with devices expected to be the fastest growing segment, according to Gartner.

Global IT spending will reach $4tn in 2021, Gartner claims, an increase of 8.4 per cent on the previous year.

Spending on devices is set to rocket by 14 per cent this year to $755.8bn. Enterprise software is the second fastest growing segment this year with spending set to grow by 10.8 per cent to $571.7bn.

IT services spending will grow nine per cent to 1.2tn, claims Gartner, data centre systems by 7.7 per cent to 247.5bn and communications services by 4.6 per cent to $1.45tn.

Gartner research VP John-David Lovelock said IT spending will move away from the "knee-jerk" spending we saw in 2020 brought on by the pandemic.

"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.

Customers will still be looking to save money and optimise their IT this year, claims Gartner, due to increasing economic uncertainty due to Covid, and CIOs will focus their spending on completing digital business plans aimed at enhancing their company's value proposition.

"IT no longer just supports corporate operations as it traditionally has, but is fully participating in business value delivery.

"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," said Lovelock.