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Global IT spending to decline in 2022

Last year, companies around the world significantly reduced their spending on enterprise technology. The tightening of IT budgets is likely to continue over the next year.

Global IT spending will contract by 0.2% in 2022 to $4.38 trillion, according to an IT consulting and research firm. This is a rare example of companies spending less on digital business tools than they did a year ago.

Gartner Ltd.

Gartner originally estimated that IT spending increased by 0.8% last year.

Gartner said in a report Wednesday that it expects spending to rise 2.4% this year, less than half its previous forecast in October, as economic uncertainty continues to roil markets. I’m here.

PCs, smartphones and other devices see the biggest cutafter spending to equip employees for remote work surged after the Covid-19 outbreak, Gartner said. estimated at approximately $685 billion.

John-David Lovelock, a prominent vice president at Gartner, says mobile devices are being used longer to extend previous investments, barring urgent upgrade needs.

Global smartphone shipments, which include both commercial and consumer buyers, fell 17% between October and December compared to the same period last year, according to a research firm, with full-year shipments down 11%. % decreased to a decade low of 1.2 billion. canalis.

According to Gartner, spending on business software and IT services has stabilized year-on-year, with combined projected spending exceeding $2.16 trillion in 2023. Among IT services, spending on consulting services alone is projected to reach $264 billion from 2022, up 6.7% from 2022, according to Gartner.

Here’s what many corporate technology leaders have to say about weatherability: severe market conditionsThey plan to focus their budgets on smaller priorities in the coming year, given high interest rates, inflation, and weak consumer and business spending.

“We don’t have the ability to focus on 10 things,” said Chief Information Officer Dani Brown.

Whirlpool Ltd.

Spending priorities include “fundamental” aspects of IT, such as software, IT modernization, and employment, which promise to unlock business value, Brown said.

Continued spending on IT services reflects a tight labor market for technical workers as technology departments bring in external IT staff to implement and support new applications. In the U.S., the unemployment rate for tech jobs across all sectors in December was 1.8%, about half the national unemployment rate of 3.5%, according to IT industry group CompTIA.

At the same time, some employers are holding back on hiring due to the cost of finding new technical workers. According to CompTIA, December marks the second month in a row that IT job postings by US employers have declined.

Shanthi Iyer, CIO of cloud-based document management service provider

docusign Ltd,

He said the volatile economic situation is forcing the company to “concentrate investments and efforts in areas of greatest impact.”

She said the focus is on talent retention, including training existing employees while hiring employees with skills in areas that help drive the company’s use of new digital tools. I was.

Chris Bedi, chief digital information officer at the software company, said:

Service Now Ltd.

“Leaders can no longer afford to try one-off solutions and are turning to proven platforms that drive value quickly,” said Bedi.

Kathryn Guarini, CIO

International office equipment Ltd.

an IBM study found that an estimated 78% of global business leaders say they will continue to invest in technology in the next year.

“They invest in areas that protect both businesses and consumers, like cybersecurity, and areas they believe will generate returns, like AI and cloud computing solutions,” Guarini said. I’m here.

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