In response to a world that has changed dramatically, enterprises are accelerating their digital transformation initiatives in 2021 with worldwide IT spending to reach $3.92 trillion, Gartner states. Much of this growth in spending is being driven by the rapid adoption of the new hybrid workplace.
All the major technology segments from software to devices to technology services will see growth in 2021 compared to 2020. According to the data from Gartner, the firm is projecting total worldwide IT spending to reach $3.92 trillion in 2021. This represents an increase of 6 percent compared to 2020. All technology segments will return to growth in 2021. In 2020, every technology segment saw overall sales drop single digits.
The most robust growth will be in enterprise software sales, which is expected to grow 8.8 percent annually to $505 billion in 2021. Global IT device spending is predicted to reach $705 billion, up 8 percent over 2020. The largest IT spending in a technology segment in 2021 is predicted to be in communications services, which is predicted to top $1.4 trillion. Spending in the data center technology segment, is expected to increase 6 percent to $228 billion this year.
Most notable for solution providers and integrators is that IT services spending is expected to increase 6 percent to $1.07 trillion in 2021, Gartner forecasts.
The current market sentiment was best summarized by John-David Lovelock, distinguished research vice president at Gartner. He suggested that over the next four years, businesses will accelerate their digital transformation plans by “at least five years” to survive a post-COVID-19 world that involves higher adoption of remote work and digital touch points.
Lovelock also said the biggest change in 2021 compared to other years will be how organizations finance their technology needs, “not necessarily how much IT is financed.”
The good news for solution providers and integrators is that enterprises are spending on technology based upon the growth and productivity they expect to see, as opposed to current revenue levels.