Security helps raise global enterprise IT spend

Worldwide spend on IT is set to rise faster during 2022 than previously forecast, according to new data by Gartner and IDC, with security set to be one of the key areas of investment.

Gartner estimates that worldwide IT spending will total $4.4 trillion in 2022, up 4% from 2021. Meanwhile IDC’s Worldwide Semiannual Services Tracker forecasts global IT and business services spend will increase 5.6% when measured in constant currency.

Marcro regions services forecast for IT and business services 2021 H2

Worldwide IT Spending Forecast (Millions of U.S. Dollars). (Source: Gartner)

Several factors are driving the growth. Gartner, for example, points out that CIOs are investing in acquiring the agility and flexibility to cope with geopolitical disruption, inflation, currency fluctuations and supply chain challenges, with key areas of investment including analytics, cloud computing, seamless customer experiences and security. At the same time, IT skills shortages and inflation are translating into higher salaries within the sector, which in turn raise costs.

Overall, software will benefit from the largest percentage increase in spending in 2022 at 9.8%, according to Gartner, whereas communications spending will experience the lowest rate of growth at 0.3%. When it comes to software, Gartner highlights infrastructure as a service (IaaS) as a key growth area, which it says “underpins every major consumer-focused online offering and mobile application, accounting for a significant portion of the almost 10% growth in software spending in 2022.”

The spending rises are happening globally. In Asia/Pac, for example, China continues to be a principal motor of IT investment, according to IDC, which forecasts rises of 6.4% and 8% on IT spending in the country for 2022 and 2023.

Separately, Deutsche Telekom’s Digitalization Index for SMEs 2021/2022, which focuses on the German market, indicates even bigger increases in IT investments by German small and medium enterprises (SMEs). The index reports that 93 % of the 2,000 small and medium companies surveyed for the report intend to maintain digital investment, with 45% of these planning an average increase in spending of 24%.

The desire to increase security and data protection are helping fuel German SMEs’ IT investment, as are improvements to digital customer experience.

Of the 2,000 companies surveyed for Deutsche Telekom’s report, “the digitization budgets will primarily benefit technologies for digital collaboration and security solutions in the company. 69% percent also want to expand communication with customers via digital channels.”

At the same time, a growing interest in sustainability is encouraging German SMEs to spend more on digital transformation. Deutsche Telekom’s survey finds that 71% of respondents are aware of climate-friendly business practices, which include optimized route planning in logistics and a greater emphasis on online events and reduced business travel.