By Millie Turner
The IT industry is “recession-proof”, according to a top analyst at market research giant Gartner, despite economic downturns pushing businesses to trim costs.
Global spending on IT, which includes software, devices, communications services and data centres, is forecast to total $4.6 trillion in 2023 – a jump of more than five per cent in comparison with this year, Gartner’s research found.
“Enterprise IT spending is recession-proof as CEOs and CFOs, rather than cutting IT budgets, are increasing spending on digital business initiatives,” top analyst John Lovelock said.
“Economic turbulence will change the context for technology investments, increasing spending in some areas and accelerating declines in others, but it is not projected to materially impact the overall level of enterprise technology spending.”
Bosses are actually expected to increase their IT spending during a negative economic spell.
“Companies will use digital technology primarily to reshape their revenue stream, adding new products and services, changing the cash flow of existing products and services, as well as changing the value proposition of existing products and services,” said Lovelock.
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