With the ongoing pandemic, remote-working and school at home have become the trend of the time. With this continuing scenario, it is expected that remote working technology will ramp up.
Global spending on remote-working-related IT is projected to hit $332.9 billion this year as businesses are resuming their IT expansion plans which were disrupted by the COVID-19 pandemic.
Disrupted by the pandemic
Many organizations were compelled to roll in otherwise they were forced to revise their digital plans in early 2020 and focus their spending on remote-work technology where more and more organizations shifted to. According to Gartner, an analyst firm, this dilemma has resulted in lower spending for IT worldwide in 2020. In fact, worldwide IT spending has gone down by 3.2% to $3.6 Trillion, with spending lowered across enterprise software, devices, and communication services.
All of these are anticipated to bounce back this year as organizations adjust to the new remote-working environment, and the ongoing COVID-19 measures made the demand for remote-work technology to shoot up. Overall, IT spending worldwide is estimated to grow about 6.2% this year to reach $3.9 Trillion.
John David Lovelock, research vice president of Gartner, said that as countries continue the remote education this year, demand for tablets and laptops for students remains high. Similarly, as many organizations continue the remote work setup, this allows CIOs to resume their investments that were set aside in 2020.
Gartner further said that the software industry is expected to have one of the strongest rebounds this year, with spending anticipated to grow by 8.8% to #505 billion as more businesses expand and improve the remote-working technology setup.
It has been said that businesses are compelled to improve their digital transformation plans until 2024 as the remote-work setup is expected to continue on. With this in mind, the worldwide IT spending that relates to remote working will grow by 4.9% this year, Gartner continued. And the devices industry is expected to come in next to the highest growth, with an estimated 5% growth to $705.4 billion this year.
While businesses may have more space in their IT spending this year, Lovelock warned that business heads are trying to strike the balance of savings while expanding IT.
Recovery of economy
With the hope that the economy will start the road to recovery, companies are investing in IT in line with their projections for growth, not merely looking at their current revenue levels, Gartner said.
Digital business with a short term perspective is gaining and is expected to continue this year. The worldwide IT spending rate is expected to return to its pre-pandemic level next year 2022, Lovelock added. While the hospitality, travel, and entertainment industries will remain at the bottom for some time in the future.
Lovelock said that the digitalization of internal processes, supply chain, customer and partner interactions, and service delivery will continue to be in demand this year. Making IT transition from being a support role to be the major player in businesses.