Spending on technology products and services will grow 5.7 per cent in Australia this year, reaching $A99.6 billion in total, according to Gartner. Local organisations will spend nearly $A5.4 billion more on hardware, software, and ICT services than they did in 2019.
Globally, Gartner is forecasting IT spend to reach $US3.9 trillion in 2020, a growth rate of 3.4 per cent from 2019.
By 2021, technology spend in Australia will be more than $A103 billion, contributing to the global mark crossing $US4 trillion.
According to the analyst firm, fears of a global recession are subsiding and organisations are redoubling their IT investments in anticipation of revenue growth.
Software is the fastest-growing market both globally and in Australia, rising 10.5 per cent and 11.9 per cent respectively. According to Gartner research vice president, John-David Lovelock the growth is being by the adoption of software-as-a-service (SaaS) products.
“We even expect spending on forms of software that are not cloud to continue to grow, albeit at a slower rate. SaaS is gaining more of the new spending, although licensed-based software will still be purchased and its use expanded through 2023,” Lovelock said.
Cloud adoption will increase, Gartner predicts, and outpace traditional non-cloud enterprise IT spend through 2022.
“Last quarter, we introduced the ‘and’ dilemma where enterprises are challenged with cutting costs and investing for growth simultaneously,” Lovelock said. “Maturing cloud environments is an example of how this dilemma is alleviated: Organisations can expect a greater return on their cloud investments through cost savings, improved agility and innovation, and better security. This spending trend isn’t going away anytime soon.”