Report: Worldwide IT Spending to grow 6.2 percent in 2021

As the world continues to accelerate digital transformation at breakneck speed, worldwide spending on IT infrastructure is expected to grow by 6.2 percent this year.

Market research firm Gartner Inc.’s latest report in its 4Q20 Market Databook revealed that despite the availability of COVID-19 vaccines, the pandemic will continue to spur significant IT spending in 2021 up until 2022.

“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,” revealed John-David Lovelock, Distinguished Research Vice President at Gartner.

Among the top five IT segments researched, enterprise software and IT devices will see the highest growth in 2021 with spendings increased by 8.8 percent and 8 percent respectively. Data center systems came in third, with a 6.2 percent increase in spending.

Overall, the total IT spending for 2021 is projected to reach $3.9 trillion.

High spending in the devices market can be attributed to remote education and remote work from students and employees, which pushed the demand for tablets and laptops. Global IT spending for remote work, therefore, will reach $332.9 billion in 2021, a 4.9 percent increase from 2020.

Mr. Lovelock also added that digital business will remain the dominant technology trend in late 2020 and 2021, with areas such as cloud computing, core business applications, security and customer experience at the forefront.

“Optimisation initiatives, such as hyperautomation, will continue and the focus of these projects will remain on returning cash and eliminating work from processes, not just tasks,” he added.