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IT spending set to bounce back in 2021

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(Image credit: Shutterstock / aorpixza)

2021 is set to see a return to firms spending more money on business IT technology this year as the world looks to bounce back from the pandemic, new research has claimed.

A report from Gartner predicts that IT spending is set to hit $3.9 trillion in 2021, representing a 6.2 percent rise compared to last year’s level.

In 2020, compared to 2019, spending dropped by 3.2 percent, as businesses were affected by the pandemic and sought to spend only on most essential things, to keep the cogs of their organizations turning.

Now, going into 2021, businesses will look to spend more on IT, but it will still be a challenging task.

“CIOs have a balancing act to perform in 2021 — saving cash and expanding IT,” said John-David Lovelock, distinguished research vice president at Gartner. “With the economy returning to a level of certainty, companies are investing in IT in a manner consistent with their expectations for growth, not their current revenue levels. Digital business, led by projects with a short Time to Value, will get more money and board level attention going into 2021.”

Gartner says all IT spending segments are set for growth this year, with enterprise software having the strongest rebound at 8.8 percent. The devices segment will be the second strongest with an eight percent growth, with Gartner expecting it to hit $705.4 billion.

Support for remote working will remain one of the main assignments for organizations in the years ahead. Gartner forecasts global IT spending related to remote work will total $332.9 billion in 2021, an increase of 4.9 percent from 2020.