{"id":33353,"date":"2023-02-08T09:30:25","date_gmt":"2023-02-08T08:30:25","guid":{"rendered":"https:\/\/www.striped-giraffe.com\/blog\/it-investitionsprognosen-fuer-2023\/"},"modified":"2023-03-06T13:13:22","modified_gmt":"2023-03-06T12:13:22","slug":"it-investment-projections-for-2023","status":"publish","type":"post","link":"https:\/\/www.striped-giraffe.com\/en\/blog\/it-investment-projections-for-2023\/","title":{"rendered":"IT investment projections for 2023"},"content":{"rendered":"

[vc_row][vc_column width=”1\/3″][\/vc_column][vc_column width=”2\/3″][vc_column_text]<\/p>\n

Organizations continue to increase spending on technology despite the world economic slowdown.<\/span><\/h3>\n

[\/vc_column_text][vc_empty_space height=”20px”][vc_column_text]It has been a tough few years for companies around the world. Businesses cannot catch a break. First the pandemic, then the war in Ukraine, and now the energy crisis, skyrocketing inflation and the specter of global recession. This could not remain without impact on even the most resilient enterprises.<\/p>\n

According to the latest research by Capgemini<\/a>, 62% of global executives say that their organization is already experiencing a slowdown. One-third (32%) of companies surveyed have seen a major reduction (>10%) and 30% a moderate reduction (<10%) in bookings\/orders for Q1 2023.<\/p>\n

The situation is rated worst by managers in Western Europe, where on average four in 10 organizations are experiencing a major slowdown. Executives in Netherlands and France are leading the way in pessimistic sentiment, with more than half of the companies reporting a significant reduction in orders for Q1 2023 (Fig. 1).<\/p>\n

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Figure 1 \u2013 Percentage of Western European executives stating their company is experiencing a slowdown.<\/strong><\/span>[\/vc_column_text][vc_single_image image=”33323″ img_size=”full” alignment=”center” onclick=”zoom”][vc_column_text]Source: Capgemini Research Institute, Global Investment Research, November\u2013December 2022<\/span><\/p>\n

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When it comes to industries, the survey showed that retail, insurance, life sciences, and healthcare are most affected by the crisis, with two-thirds of managers seeing a slowdown and more than one-third of organizations reporting a significant reduction in orders for Q1 2023.<\/p>\n

The best-performing of the industries analyzed is automotive, where \u201cjust\u201d slightly more than one-fifth of companies are reporting order reductions of more than 10% (Fig. 2).<\/p>\n

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Figure 2 \u2013 Percentage of executives stating that their business is experiencing a slowdown, by sector.<\/strong><\/span>[\/vc_column_text][vc_single_image image=”33325″ img_size=”full” alignment=”center” onclick=”zoom”][vc_column_text]Source: Capgemini Research Institute, Global Investment Research, November\u2013December 2022<\/span><\/p>\n

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IT spending remains recession-proof<\/strong><\/h2>\n

Turbulent economic reality and uncertain future perspectives are forcing companies to seek savings and cost optimization across the board. Delaying or reducing investments is one of the standard actions that companies usually respond to a crisis.<\/p>\n

However, not all investments will be subject to limitations. IT is one of those areas where companies are not planning to cut spending. On the contrary.<\/span> Various surveys indicate that despite economic headwinds, a significant number of businesses plan to continue or even increase their investment in technology this year.<\/p>\n

Apparently, having learned their lesson from the pandemic, companies are now fully aware that investing in technological development is one of the key factors enabling them to survive and even thrive in times of crisis.<\/p>\n

Finally, it should not be forgotten that modern technologies lead to significant savings for the enterprise by achieving higher efficiency, better productivity, greater competitiveness and resilience to turbulence.<\/p>\n

According to a recent survey<\/a> that IBM commissioned from Morning Consult, 78% of global business leaders said that their organizations would be prioritizing or increasing investments in technology in the next 12 months. Only 18% said they would depreciate or reduce spending on IT solutions.<\/p>\n

Importantly, IT investment topped the list of investment priorities<\/span>, ahead of all other domains, including research and development, ESG goals, operations, marketing and communications, or even customer service (Fig. 3).<\/p>\n

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Figure 3 \u2013 How businesses plan to prioritize or increase invest in the next 12 months.<\/strong><\/span>[\/vc_column_text][vc_single_image image=”33403″ img_size=”full” alignment=”center” onclick=”zoom”][vc_column_text]Source: \u201cGlobal Technology Investment Predictions Report\u201d, Morning Consult, IBM, November 2022<\/span><\/p>\n

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Gartner\u2019s latest estimate<\/a> from Q4 2022 shows that global IT spending will grow by 2.4% to $4.5 trillion in 2023 (Table 1).<\/p>\n

The lion\u2019s share of Gartner’s projected growth will come from investments in software and IT services.<\/span><\/p>\n

Total global spending on software<\/strong> will increase from $783.5 billion in 2022 to $856 billion in 2023, a 9.3% growth.<\/p>\n

The market for IT services<\/strong> is on the rise, as many companies rely on external experts for implementation and support. For this reason, Gartner expects growth of 5.5% here this year.<\/p>\n

It is also worth pointing out that spending on consulting<\/strong>, which is part of IT services, is expected to reach USD 264.9 billion in 2023, an increase of 6.7% compared with 2022.<\/p>\n

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Table 1 \u2013 Worldwide IT spending forecast (millions of USD).<\/strong><\/span>[\/vc_column_text][vc_column_text]<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n2022<\/span> SPENDING<\/strong><\/td>\n2022<\/span> GROWTH<\/strong><\/td>\n2023<\/span> SPENDING<\/strong><\/td>\n2023<\/span> GROWTH<\/strong><\/td>\n<\/tr>\n
DATA CENTER SYSTEMS<\/strong><\/td>\n212,376<\/td>\n12.0%<\/td>\n213,853<\/td>\n0.7%<\/td>\n<\/tr>\n
SOFTWARE<\/strong><\/td>\n783,462<\/td>\n7.1%<\/td>\n856,029<\/td>\n9.3%<\/td>\n<\/tr>\n
DEVICES<\/strong><\/td>\n722,181<\/td>\n-10.6%<\/td>\n685,633<\/td>\n-5.1%<\/td>\n<\/tr>\n
IT SERVICES<\/strong><\/td>\n1,244,746<\/td>\n3.0%<\/td>\n1,312,588<\/td>\n5.5%<\/td>\n<\/tr>\n
COMMUNICATION SERVICES<\/strong><\/td>\n1,422,506<\/td>\n-2.4%<\/td>\n1,423,367<\/td>\n0.1%<\/td>\n<\/tr>\n
OVERALL IT<\/strong><\/td>\n4,385,270<\/strong><\/td>\n-0.2%<\/strong><\/td>\n4,491,471<\/strong><\/td>\n2.4%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Source: Gartner, January 2023<\/span><\/p>\n

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IT investment priorities<\/strong><\/h2>\n

According to a study by Capgemini, companies will prioritize technologies to reduce costs<\/strong> over the next 12 to 18 months.<\/span><\/p>\n

Nearly three in four (72%) business executives surveyed said they would be looking to make significant technology investments to reduce long-term cost, while 59% would be investing in technology to support faster decision-making<\/strong>.<\/p>\n

Global business leaders\u2019 top priorities for planned IT investments include:<\/p>\n