IT spending is set to bounce back strongly in 2021, with all segments predicted to return to growth, according to a new analyst report.
A new Gartner webinar states that worldwide IT spend is expected to grow by 6.2% in 2021, reaching a total of $3.9 trillion, with expenditure up across the board.
Enterprise software is predicted to show the largest rebound, growing 8.8% in 2021. Data center systems, devices, IT services, and communications services are also set for a better year.
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The IT rebound
Many organizations cut their IT expenditure drastically last year in light of the coronavirus pandemic, choosing to focus on mission-critical technology and services. As a result, global IT expenditure fell 3.2% during 2020.
“There is a combination of factors pushing the devices market higher,” said John-David Lovelock, research vice president at Gartner. “As countries continue remote education through this year, there will be a demand for tablets and laptops for students. Likewise, organizations are industrializing remote work for employees as quarantine measures keep employees at home and budget stabilization allows CIOs to reinvest in assets that were sweated in 2020.”
In addition, with COVID-19 set to make permanent changes to the business landscape, many firms will continue to ramp up their digital transformation efforts in the coming years. Gartner expects IT spend related to remote work to continue to be prioritized, reaching $332.9 billion in 2021, an increase of 4.9% when compared with last year.
Although worldwide IT spend is not likely to return to its pre-pandemic levels until 2022 at least, many IT segments are likely to perform well over the next 12 months, including cloud computing, hyperautomation, customer experience, and core business applications.
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