Gartner: 2021 IT spending rally could hit $3.9T

Gartner says businesses need to advance their digital-transformation plans 5 years to survive in a post-pandemic world.

ben franklin hundred dollars in a vice budget tight budget spending by modernlife getty
ModernLife / Getty Images

Gartner projects worldwide IT spending will total $3.9 trillion in 2021, an increase of 6.2% over 2020 when spending declined a little over 3%.

All IT spending segments—from data-center systems to communications services—are forecast to return to growth in 2021, according to Gartner . Enterprise software is expected to have the strongest rebound, 8.8%, as remote work environments are expanded and improved. The devices segment will see the second highest growth in, 8%, and is projected to reach $705.4 billion.

“CIOs have a balancing act to perform in 2021—saving cash and expanding IT,” said John-David Lovelock, distinguished research vice president at Gartner in a statement. “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.”

Enterprises are industrializing remote work for employees as quarantine measures keep employees at home, and budget stabilization allows CIOs to reinvest in assets that were sweated in 2020, Lovelock stated. “As countries continue remote education through this year, there will be a demand for tablets and laptops for students,” he stated.

Digital business transformation will be a huge spending driver through 2024, Lovelock stated. 

To continue reading this article register now

SD-WAN buyers guide: Key questions to ask vendors (and yourself)