Digital Transformation Initiatives Will Skyrocket IT Spending To $4.1 Trillion

Worldwide IT spending is expected to grow by 8.4% to $4.1 trillion in 2021 due to businesses' digital transformation initiatives.

Owen Hughes of TechRepublic expands on how digital transformation initiatives will be the priority for IT spending in the year 2021 and what will be the focus areas.

Here is the brief:

  • IT spending in the banking, security and insurance industries could reach pre-pandemic peaks in 2021, but spending in other industries will take some more time to recover.

  • Gartner points out that the highest spending would be on devices (14%) and enterprise software (10%) because of the shift to remote and hybrid working.

  • There is a surge in investments in social software, collaboration platforms, and human capital management software because of the focus on employee experience and wellbeing.  

  • This will transfer IT from a back-office role to the front of the business, and IT will be one of the drivers of revenue rather than just an overhead expense.

  • Though CIOs will continue to focus on cost-saving and optimization, their priority will shift to spending that drives innovation and not just task completion.

What We Think

Digital transformation initiatives are no doubt good for your business. Still, as enterprise software increases in organizations, companies should proactively look at the adoption of these applications and subsequent improvement to productivity and customer experience. The IT stakeholders should be wary of this and ensure that they have the necessary tools and metrics to centrally track the adoption, utilization, and impact of such tools.

You can read the full article here.