These concerns will cause CIOs and their business partners to adopt a more cautious approach to their tech spending, resulting in a slowdown in business and government purchases of tech goods and services from a peak of 5% in 2018 to 3.9% in 2019, 2.8% in 2020, and 3.1% in 2021, in constant currency terms. The MarketWatch News Department was not involved in the creation of this content. Digital transformation is set to drive a large proportion of growth in the next 5-10 years, which will continue to ensure steady demand for professional services. Weighted-average data incorporates data from all 303 respondents, including industries with 15 or fewer respondents. In the Flexera 2020 State of Tech Spend report we identified IT spending by industry across financial services, retail, healthcare, software, services, hosting, industrial and consumer products, transportation and logistics. Transportation and logistics organization follow with 94 percent planning to increase IaaS/PaaS use. There is a natural cohesion between the traditional technologies which continue to see growth (cloud, mobile, social and analytics) and new technologies. March 5, 2020 Kim Weins @flexera Subscribe. Tags: Digital Transformation, State of Tech Spend, Technology Spend. Meanwhile, cost savings generated by cloud and automation will see more spending diverted towards new technologies such as AI, robotics, AR/VR, and blockchain. Most recently, as senior vice president of marketing at OpenLogic, she helped evangelize and drive demand for open source and cloud technologies at large enterprises worldwide. “CIOs can invest significantly less cash upfront by utilizing cloud technology rather than scaling up on-premises data center capacity or acquiring traditional licensed software.” IT spending trends. The spending … However, there was significant variation by industry, with 85 percent of retail organizations planning to increase 2020 IT spend, more than double the 42 percent of consumer products companies planning to grow IT investments. The average IT spend across all industries was 8.2 percent of revenue. Business and government spending on tech goods and services in Asia-Pacific 2013-2018 Latvia: number of employees in the ICT manufacturing industry 2008-2015 Czech Republic: number of … Give us your email and we’ll keep you in the loop, Mergers and Acquisitions: IT can make or break, 2020 CIO Trends - CIOs Reveal Their Top Priorities, optimizing their use of software, SaaS and cloud, 5 Tips to Find Software and SaaS Savings Now (and in the Future), Cloud Computing Trends: 2020 State of the Cloud Report, Technology Spend & Other CIO Challenges During COVID, Survive Then Thrive –Driving Cost Savings While Continuing to Innovate, 2020 CIO Trends – CIOs Reveal Their Top Priorities, An Introduction to Microsoft SQL Server Licensing, Comparing Cloud Instance Pricing: AWS vs Azure vs Google vs IBM, AWS vs Azure vs Google Cloud Pricing: Compute Instances, Hundreds of products to hit EOL/EOS by the end of 2018, 2020 State of Tech Spend: IT Spending Benchmarks and Trends. Benchmark your IT operational spending levels by comparing them with those of organizations of similar size and industry sector. The Fight for Smart Assistant Dominance Heats Up as Smart Home Market Grows, Says Danielle Cassagnol, Industry Communications, CTA ⋅ Published: November 3, 2020 ⋅ Updated: November 4, 2020. China, the world`s second largest economy, is forecast to reach a projected market size of US$9.2 Billion by the year 2027 trailing a CAGR of … [email protected]. Gartner's latest forecast, released in April, put worldwide IT spending for 2018 at $3.74 trillion, up 6.2 percent from 2017. Across all industries, 56 percent of organizations expected an increase in IT spend in 2020, compared to 20 percent expecting a decrease. Transportation and logistics companies are shifting quickly to IaaS/PaaS, with 100 percent planning to increase IaaS/PaaS spend and 50 percent planning significant increases. While the global economy is expected to witness a ‘swoosh’ recovery, IT spending will experience more of a ‘swoop’ recovery. VW Boosts Tech Spending Within $177 Billion Investment Plan Robotic arms scan the body of a VW ID.3 electric car at the automaker's factory in Zwickau, Germany. VMware Cloud on AWS Pricing: Is It Really Cheaper Than AWS? The Worldwide ICT Spending Guide: Industry and Company Size is IDC's flagship all-in-one data product capturing IT spending across more than 120 technology … Services organizations were most likely to focus on digital transformation, with 95 percent ranking it one of their top three initiatives. Over the next 10 years, the gap will begin to narrow. Tech consulting and systems integration services spending will be flat in a temporary slowdown and could be down by up to 5% if firms cut back on new tech projects. While the number of data centers will go down for most organizations, the use of public cloud will go up for 86 percent of organizations, with 41 percent expecting significant increases. The overall impact of new technologies, then, is much bigger than revenues associated with discrete categories such as IoT sensors, 3D printers or drones. While organizations are shifting workloads to the cloud, they still have high levels of spend with traditional on-premises vendors. All fields not labeled "optional" are required. This blog highlights industry developments you need to know. Across all industries, 55 percent of organizations are planning to decrease spend for on-premises software in 2020, compared to 23 percent expecting to increase. The US tech budget outlook for 2020 and 2021 is getting darker, but growth will still be positive with a low risk of an actual downturn. Pharmaceuticals/Health Products: $4,450,373,773 . Transportation and logistics are focusing on how to make last-mile delivery more cost effective. However, businesses in emerging markets have already moved quickly to focus on rapid adoption of new technologies which deliver rapid return on investment for targeted industrial use cases such as deployment of IoT and robotics solutions by manufacturing firms in China and the rest of Asia. Read Less Wristbands Face Flat Growth 5 Billion by 2027. Growth in traditional hardware, software and services will be driven by cloud and mobile and will maintain a stable share of overall business and consumer spending. For example, they look at sales expense, marketing expense, and accounting costs all calculated as a percentage of revenue. More, Stephen Minton There will continue to be some cannibalisation of traditional IT services (outsourcing, in particular), but cloud and mobile also create opportunities for IT and business services firms as organisations seek help with their migration to new platforms and the integration of new digital strategies with existing operations and metrics. Largely due to the rapid growth of IoT in recent years, led by investments in the manufacturing and transportation industries, new technologies will soon eclipse $1 trillion in annual revenue. In most large organizations, business units control a portion of IT spend which often includes shadow IT. Worldwide IT spending is projected to near $4 trillion in 2019. in engineering from Duke University. Technology services industry body National Association of Software and Service Companies said there has been a significant acceleration in technology spending during the pandemic and witnessed a 30% jump in digital transformation deals.In a joint report, Future of Technology Services – Navigating the New Normal, prepared by Nasscom and McKinsey, the industry body has found out … Indian tech companies are expected to invest USD 81.9 billion, with enterprise software and IT services the leading segments in a … Global Technology Spending on Core Administration in Healthcare Market to Reach $42 Billion by 2027. Kim Weins is the vice president of cloud strategy at Flexera, where she helps build awareness of its award-winning cloud management solution. Contents: IT spending by industry charts. Computing this metric for information technology is a logical extension. 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