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IT Spending Predictions for 2021 to Boost Tech Companies Morale

By VARINDIA - 2021-04-27

IT Spending Predictions for 2021 to Boost Tech Companies Morale

Digital transformation is on a fast-track as IT spending has increased due to Covid-19. Even before the pandemic, most businesses realised the importance of digital and online models and had made decent progress to keep business agile and address larger markets. Pandemic reinforced the importance of technology investments to extend flexibility in different lockdown scenarios including Work from Anywhere. Most IT firms focused around empowering secured digital business did well despite India’s GDP posting negative growth; few companies have also shown a double digit growth for Fiscal year 21.

 

Forward looking companies did a lot of saving around business travel and office expenses during pandemic most of which was invested around securely extending business apps to all stakeholders, strengthening authentication and end point security, ensuring optimal app performance for Work From Anywhere scenarios and securing endpoint data. Business continuity was another key focus area with investment in hybrid cloud models for bursting in and out of multi-clouds from private and seamlessly managing it remotely. With rapid recovery during the 2nd half of Fy21 and India poised for the fastest GDP growth for Fy22, all hopes are on the growth opportunities for the IT fraternity focused around services and solutions to empower business to power safe, secure and scalable digitisation of business. We expect relevant IT to grow at 2X of GDP which would be around 26% for Fy22.

 

Fast-track digital transformation during a downturn has created opportunities for many technology players to introduce to newer digital tools and technologies. Generally speaking, it's the technologies that have improved collaboration and transparency while prioritizing online identity security that are thriving amidst the global crisis. The Gartner report on the worldwide IT spending forecast is pretty much in line with what we hear when talking to the CIOs in Indian Industry. Coming out of a difficult year when a lot of IT spends was made on extenuating circumstances where the focus was on ensuring business continuity by providing access for remote working environments. This year will see spends on two fronts – one consolidation of the strategy and execution for a more continued Work From Home culture and second re-starting of the paused transformation projects. The role of IT is becoming more about business value delivery.

 

Gartner has predicted that the total worldwide IT spending is going to increase in 2021 from 3.2 Million dollars to 3.9 Million dollars. Enterprise Software is predicted to grow 8.8%.To ensure growth consistency and right focus on expenditure in the enterprise industry this data is useful. Change in IT policies, tools and with the right budget, the predicted increase in spending will certainly give the needed edge to all the organizations connected directly or indirectly to digital transformation. Due to the after effects of the pandemic, there is a necessity for companies to carefully plan their expenditure. As remote working has become the new norm. IT now will assume a “spearhead” function to achieve enterprise goals rather than being just a support player. We anticipate a larger role for IT to play in the coming years and the Gartner forecast only confirms the same.


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