Analysts Discuss the Outlook for the Global IT Market During Gartner IT Symposium/Xpo 2022, October 17-20, in Orlando

Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by Gartner, Inc. Demand for IT in 2023 is expected to be strong as enterprises push forward with digital business initiatives in response to economic turmoil.

“Enterprise IT spending is recession-proof as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,” said John-David Lovelock, Distinguished VP Analyst at Gartner. “Economic turbulence will change the context for technology investments, increasing spending in some areas and accelerating declines in others, but it is not projected to materially impact the overall level of enterprise technology spending.

“However, inflation has cut into consumer purchasing power in almost every country around the world. Consumer purchasing power has been reduced to the point that many consumers are now deferring 2022 device purchases until 2023, driving spending on devices down 8.4% in 2022 and 0.6% in 2023.”

Gartner analysts are discussing the trends that are impacting the IT market during Gartner IT Symposium/Xpo™, taking place here through Thursday.

The technologies that are being maintained versus those that are driving the business are evident by their projected growth rates in 2023. There is sufficient spending within data center markets to maintain existing on-premises data centers, but new spending continues to shift to cloud options, as evidenced by the 11.3% projected growth for software spending in 2023 (see Table 1).

Table 1. Worldwide IT Spending Forecast (Millions of U.S. Dollars)

Organizations Continue to Protect Efficiency-Driven Digital Investments

In a down or deteriorating economy, conventional wisdom calls for reducing costs, including IT costs. However, a July 2022 Gartner survey of more than 200 CFOs found that 69% plan to increase their spend on digital technologies, while the 2023 Gartner CIO and Technology Executive Survey found that CIOs are being tasked with accelerating time to value on digital investments.

“Companies will use digital technology primarily to reshape their revenue stream, adding new products and services, changing the cash flow of existing products and services, as well as changing the value proposition of existing products and services,” said Lovelock. “This trend has fed the shift from buying technology to building, composing and assembling technology to meet specific business drivers. This shift is foundational to the growth of cloud over on-premises for new IT spending.

“However, as organizations look to also realize operations efficiency, cost reductions and/or cost avoidance during the current economic uncertainty, more traditional back-office and operational needs of departments outside IT are being added to the digital transformation project list.”

More detailed analysis on the outlook for global IT spending is available in the Gartner webinar “IT Spend Forecast, 3Q22: Is IT Spending Recession Proof?” Learn about the top priorities for CIOs in 2022 in the complimentary Gartner ebook 2022 Leadership Vision for Chief Information Officers.

Gartner’s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand 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.

The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in “Gartner Market Databook, 3Q22 Update.”

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo™ 2022 is the world's most important gathering for CIOs and other IT executives. IT executives rely on these conferences to learn how to meet the moment and make a difference by providing the vision and results needed to lift their organizations to the next level. Follow news, photos and video coming from Gartner IT Symposium/Xpo on the Gartner Newsroom, on Twitter using #GartnerSYM, Instagram and LinkedIn.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

October 31-November 2 | Tokyo, Japan

November 7-10 | Barcelona, Spain

November 14-16 | India

About Gartner for High Tech

Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech.

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About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization’s mission critical priorities. To learn more, visit gartner.com.

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Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by Gartner, Inc.