While inflation continues to erode consumer purchasing power and depress budget spending, overall corporate IT spending is expected to remain strong.
According to Gartner's latest forecast, global IT spending is expected to reach $4.5 trillion in 2023, up 2.4 percent from 2022. That was down from the 5.1 per cent growth forecast in the previous quarter. While inflation continues to erode consumer purchasing power and depress budget spending, overall corporate IT spending is expected to remain strong.
The information shows that the software and IT services sectors are expected to grow by 9.3 percent and 5.5 percent respectively in 2023. The market is expected to fall 5.1 per cent this year as consumers and businesses alike extend their purchase renewal cycles (chart below).
At the same time, as software spending continues to grow, so does the IT services market, as companies look to bring in external IT personnel to implement and support. For example, global consulting spending is expected to reach $264.9 billion in 2023, up 6.7 percent from 2022.
