UK to lead 2023 EMEA IT spending rebound, Gartner predicts

UK IT spend expected to rise by 5.2 per cent next year

Businesses in EMEA will increase their IT budgets in 2023, with the UK leading the way, Gartner has forecast.

After contracting by 3.8 per cent in 2022, total EMEA IT spending will rebound 3.7 per cent in 2023 to $1.3tn, according to the market watcher.

Businesses across the region "will increase their IT budgets", distinguished vice president analyst John Lovelock predicted, although he added that EMEA CIOs will perform a balancing act with their budget.

"For example, they will use digital technology to help other departments realise operational efficiency and cost savings and deploy digital technology to transform their company's value proposition, revenue, and client interactions," he said.

Enterprise software spending is on pace to rebound faster than the other segments with a forecasted 8.6 per cent hike in 2023, Gartner said.

Having declined by a projected 13 per cent in 2022, spending on devices will decline again in 2023, albeit by a more modest 2.6 per cent, according to the number cruncher.

Data Centre Systems spending will grow one per cent next year after rising 1.8 per cent in 2022, Gartner predicted, with IT services spending set to rebound 6.6 per cent.

Among the most mature markets in Western Europe, UK IT spending is projected to record the highest growth in 2023, achieving a 5.2 per cent hike year-over-year to reach $218.7bn, Gartner said.

UK IT spending also achieved the highest growth rate in 2022 in local currencies (eight per cent), Gartner noted.

"However, because of the weakness of the British pound compared to the US dollar, it translates into an overall decrease in IT spending of 2.5 per cent in US dollars," Lovelock said.