Most North American and European corporations aim to raise Information Technology ( IT ) expenditure in the next year; despite fears of a US recession.
51% of organisations plan to boost their tech spending year-over-year; while only 6% plan to cut back.
SWZD’s data comes from its annual State of IT study; which surveyed 1,400 North American and European IT decision makers.
Average spending increase for businesses planning to spend more next year is 21%.
These startling outcomes came despite widespread corporate fears of a recession. 86% of companies fear a recession; according to studies.
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SWZD’s Date From its annual State of Information Technology ( IT )
SWZD’s study suggests IT spending is still set to grow; and not just due to inflation; even as firms scramble to decrease overall spending by halting hiring, decreasing employment, and re-evaluating existing contracts.
IT investments have helped firms survive and grow in times of upheaval and uncertainty; says SWZD’s Peter Tsai. Despite IT workers’ assumption that a recession is imminent, the IT industry’s future appears bright.
Jim Rapoza, VP and Principal Analyst at SWZD’s Aberdeen Strategy & Research; said the expected increase in IT investment is largely due to measures made in response to the COVID-19 epidemic.
SWZD’s 2020 State of Information Technology ( IT ) report found that one-third of organisations intended to invest IT money on remote work, including security, data governance, and online collaboration tools. As a result, firms now approach IT investment differently.
“Now, more than two years later; even in the face of a recession; businesses no longer see technology as a cost they have to absorb,” adds Rapoza. IT has become a key investment for modern corporate success.
Rapoza thinks most organisations would prioritise new IT initiatives; replace ageing hardware and software; and bolster security. Another objective is moving IT resources online. Planned spending on new hardware has declined 3% since 2020; but spending on cloud computing and managed services has climbed by the same amount.