Global IT spending is estimated to total $4.2 trillion in 2021, an increase of 8.6% from 2020, according to the latest forecast by Gartner.
“Technology spending is entering a new build budget phase,” said John-David Lovelock, Research Vice President at Gartner. “CIOs are looking for partners who can think past the digital sprints of 2020 and be more intentional in their digital transformation efforts in 2021. This means building technologies and services that don’t yet exist, and further differentiating their organization in an already crowded market.”
As many companies still suffer revenue declines, IT spending is accelerating ahead of revenue expectations. Boards and CEOs are much more willing to invest in technology that has a clear tie to business outcomes, and less so for everything else. For example, the IT services segment is among the top three highest growth areas for 2021 primarily due to a boost in infrastructure-as-a-service spending that supports mission critical workloads and avoids high on-premises costs. The IT services segment is forecast to total $1.2 trillion in 2021, an increase of 9.8% from 2020.
Worldwide IT Spending Forecast (Millions of U.S. Dollars)
| 2020 Spending | 2020 Growth (%) | 2021 Spending | 2021 Growth (%) | 2022 Spending | 2022 Growth (%) | |
| Data Center Systems | 178,466 | 2.5 | 191,648 | 7.4 | 201,659 | 5.2 |
| Enterprise Software | 529,028 | 9.1 | 598,957 | 13.2 | 669,114 | 11.7 |
| Devices | 696,990 | -1.5 | 793,973 | 13.9 | 800,172 | 0.8 |
| IT Services | 1,071,281 | 1.7 | 1,176,676 | 9.8 | 1,277,228 | 8.5 |
| Communications Services | 1,396,287 | -1.4 | 1,444,980 | 3.5 | 1,481,878 | 2.6 |
| Overall IT | 3,872,052 | 0.9 | 4,206,234 | 8.6 | 4,430,051 | 5.3 |
Source: Gartner (July 2021)
MENA IT Spending Forecast (in Constant Currency)
| Year | |||||
| Segment | Data | 2019 YR | 2020 YR | 2021 YR | 2022 YR |
| Communication Services | Sum of EUS US$
Growth in CC |
110,307 | 109,642
1.0% |
110,568
1.9% |
113,152
3.2% |
| Data Center Systems | Sum of EUS US$
Growth in CC |
3,051 | 3,142
5.4% |
3,252
5.2% |
3,309
3.9% |
| Devices | Sum of EUS US$
Growth in CC |
28,470 | 26,870
-2.4% |
28,398
8.3% |
28,278
1.5% |
| IT Services | Sum of EUS US$
Growth in CC |
13,327 | 13,555
1.7% |
14,881
9.1% |
16,222
10.3% |
| Software | Sum of EUS US$
Growth in CC |
7,178 | 8,069
14.1% |
8,913
11.1% |
9,747
11.7% |
| Total Sum of EUS US$ | 162,333 | 161,278 | 166,013 | 170,708 | |
| Total Growth in CC | 1.2% | 4.1% | 4.0% | ||
Source: Gartner (July 2021)
“Digital transformation can no longer be purchased overnight, and global IT spending projections reflect that,” said Lovelock. “As the world continues to open back up, enterprises will invest in tools that support innovation, anywhere operations and employee productivity and trust.”
