Global IT spending will jump 6.2 per cent this year to $3.9 trillion, after it fell 3.2 per cent in 2020 as CIOs prioritised spending on technology and services that were deemed “mission-critical” during the first stages of the pandemic.

All IT spending segments are forecast to return to growth in 2021, with enterprise software expected to have the strongest growth at 8.8 per cent - reaching $506 billion - as remote working environments are expanded and improved.

The devices segment will see the second highest growth with an extra 8 per cent spent, totalling $705.4 billion, helped by companies buying gadgets for staff working from home.

Gartner forecasts global IT spending related to remote working will total $332.9 billion in 2021, an increase of 4.9 per cent from 2020.

“CIOs have a balancing act to perform in 2021, in saving cash and expanding IT,” said John-David Lovelock, an analyst at Gartner. “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.

“Digital business, led by projects with a short time to value, will get more money and board level attention going into 2021.”

Through to 2024, businesses will be forced to “accelerate” digital business transformation plans by “at least” five years to “survive” in a post-COVID-19 world, that involves a permanently higher adoption of remote work and digital touchpoints, said Gartner.

In 2022, the analyst house predicts that total global IT spending will rise 4.6 per cent to $4.1 trillion.

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