Gartner: Overall IT Spend Has Slowed. But IT Services? That’s Still Growing.

Gartner's recent forecast of worldwide IT spend shows that despite the overall IT spend barely growing, the IT services segment is the second fastest grower behind software at 5.5%. This report highlights the current state of the IT industry and provides valuable insights into the future of IT spending.

Worldwide IT Spending Forecast (Millions of U.S. Dollars); Source: Gartner (January 2023)

According to Gartner, worldwide IT spend is expected to reach $2.4 trillion in 2023, a slight decrease from the previous year. However, the IT services segment is the second fastest growing segment, with a projected growth rate of 5.5%, an increased growth rate over the prior year’s levels of 3%. This growth is driven by the increasing demand for digital transformation, cloud computing, and cybersecurity services.

The growth in IT services is also a reflection of the changing business landscape. As companies continue to adopt new technologies and digital solutions, the need for IT services to support and manage these solutions is growing. IT services providers are helping businesses to adopt new technologies, such as cloud computing and artificial intelligence, and to improve their digital processes and systems.

The software segment is the fastest growing segment, with a projected growth rate of 9.3%, an increased growth rate over the prior year’s levels of 7.1%. This growth is driven by the increasing demand for software solutions, such as business intelligence and analytics, enterprise resource planning, and customer relationship management.

It is important to note that despite the growth in IT services and software, the overall IT spend is barely growing. This is due to the challenges posed by the ongoing pandemic, which has affected the global economy and has resulted in reduced IT spending by many organizations.

In conclusion, Gartner's recent forecast of worldwide IT spend highlights the current state of the IT industry and provides valuable insights into the future of IT spending. Despite the overall IT spend barely growing, the IT services segment is the second fastest grower behind software, reflecting the increasing demand for digital transformation, cloud computing, and cybersecurity services.