Respected Analysts Gartner have outlined their expectations in terms of a not-unexpected decline in spending for 2020, but predicts a much healthier outcome for 2021.
The basic figures – for IT Spend for companies across the EMEA region – is outlined below:
- Overall Spend: 2020 6.5% Decline / 2.8% Growth in 2021
- Datacentre spend: 2020 7.7% Decline / 4.1% Growth in 2021
- Enterprise Software: 2020 4.1% Decline / 6.1% Growth in 2021
- Device purchases: 2020 15.1% Decline / 1.7% Growth in 2021
The main driver for the change in spending in 2021 is to implement changes that will see a quick return on investment.
As reported in Computer Weekly “John-David Lovelock, distinguished research vice-president at Gartner, said: “Before the pandemic, most organisations moved their digital strategies forward at a steady pace. The way forward in 2021 is for organisations is to increase, rather than decrease, the speed of their digital business initiatives and fund those initiatives by diverting funds from other areas of IT…. According to Lovelock, CIOs will try to target IT investments in those areas that have the fastest cash return, which is a measure of how quickly the investment delivers value to the business.”
Apache says: 2020 has been rough for the majority of sectors and it’s not at all a surprise that companies have mothballed spending whilst we ride out the Covid-crisis and we’d suggest the only area that will have seen significant spend is security, as people transition from office to home working. However, its heartening to hear a of return to investment in 2021 - here’s hoping that this prediction plays out.
For more information on this story, go to https://www.computerweekly.com/news/252491915/Gartner-IT-spending-to-focus-on-fast-time-to-value