Based on the strong demand for enterprise software and technology services, global IT spending is expected to grow more than 5% to $4.5 trillion, according to research firm Gartner.
The firm forecasts enterprise software to grow at a 11% clip in 2022 and 11.9% in 2023, good for the most growth of any segment over the next two years. This reflects the already booming Software-as-a-Service market which helped grow the enterprise software segment by 14.4% in 2021.
According to Gartner, the cloud market within the enterprise software market became larger than the non-cloud market for the first time, largely due to the COVID-19 pandemic. Cloud-based software is now responsible for nearly all of the 11% spending growth expected in 2022, the firm says.
By 2025, Gartner expects the cloud market to be double the size of the non-cloud market.
Meanwhile, Gartner predicts that IT services — which includes managed services and consulting — will grow by rates of 7.9% and 8.8% in 2022 and 2023, respectively. That segment grew by 10.7% in 2021, according to the firm.
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Organizations are expected to increase their reliance on external consultants, Gartner says, citing the urgency and accelerated pace of change that is widening the gap between organization’s IT ambitions and their internal capabilities.
In a statement, John-David Lovelock, distinguished research vice president at Gartner, says CIOs and tech decision makers are now in a position to move beyond the critical, short-term projects over the past two years and focus on the long term.
Lovelock says skills gaps, wage inflation and a competition for talent will push CIOs to rely more on outsourced services and consultancies.
“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work,” said Lovelock. “Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years.”
This article originally appeared on our sister site My TechDecisions. For previous coverage on Gartner, please visit our site archives here.
