According to the firm Gartner, digital transformation projects in business will lead to an 8.4% increase in global spending on information technology in 2021.
Global IT spending is expected to jump 8.4 percent to $ 4.1 trillion in 2021, according to Gartner, as industry leaders spend on the digital transformation of their businesses. The increase in IT spending won't come from traditional IT departments. Instead, industry leaders will see IT as a cost as businesses go digital.
IT spending will pick up and exceed 2019 levels at varying rates by industry. For example, IT spending for retail and transportation won't exceed 2019 levels until around 2023, according to Gartner. IT spending by banks and financial services will exceed 2019 levels in 2021.
All categories of IT spending will grow, but demand for devices will see the greatest growth, followed by enterprise software. But each category will show solid growth in 2021, according to Gartner.
Optimizing costs is a priorityOverall, IT spending will be driven by digital transformation-related business plans that will be refined and completed in 2021. Cost optimization will remain a priority, but IT spending in 2021 will focus on revenue growth, says Gartner.
By region, Latin America's IT spending will pick up in 2024 and China has already recovered. North America and Western Europe will see IT spending pick up at the end of 2021.