Global IT spend likely to grow 6.2% in 2021

San Francisco: After a decline in the pandemic-hit 2020, worldwide IT spending is projected to total $3.9 trillion in 2021, an increase of 6.2 per cent from the previous year, according to the latest forecast by Gartner on Monday.

Worldwide IT spending declined 3.2 per cent in 2020 as Chief information officers (CIOs) prioritised spending on technology and services that were deemed 'mission-critical' during the initial stages of the pandemic.

The unprecedented speed of digital transformation in 2020 to satisfy remote working, education and new social norms presented lockdowns and social distancing measures as double-edged swords - one which has abated the pandemic's negative effect on IT spending going into the New Year.

"CIOs have a balancing act to perform in 2021 - saving cash and expanding IT," John-David Lovelock, Research Vice President at Gartner, said: "With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short Time to Value, will get more money and board-level attention going into 2021."

All IT spending segments are forecast to return to growth in 2021, according to Gartner. Enterprise software is expected to have the strongest rebound - 8.8 per cent as remote work environments are expanded and improved.

With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels

-John-David Lovelock, Research Vice President, Gartner