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| Gartner: IT spending in the region is expected to increase by 3.1% in 2023 |
The latest report by market research firm Gartner predicts that IT spending in the Middle East and North Africa will reach approximately $178.1 billion in 2023, with a growth rate of 3.1% from 2022.
According to the report, total global IT spending is expected to reach nearly $4.6 trillion in 2023, up 5.1% from 2022.
The year 2023 is expected to create a huge demand for information technology, especially given the growing demand from the corporate sectors and plans to implement more digital business initiatives amid the economic market turmoil.
“IT spending will increase exponentially, especially in the enterprise space, as CEOs and CFOs look to increase spending on digital business initiatives rather than cut IT budgets,” said Miriam Burt, vice president of research at Gartner. Technology investment environment, because this will lead to an increase in spending in some areas, and by itself will lead to a decrease in the rate of spending or a rise in other areas, but we do not know if this will have an effect. Tangible on the overall level of IT spending for the project sector.
She added, “However, inflation rates have eroded the purchasing power of consumers in almost every country in the world. Purchasing power has declined so much that many consumers are now considering postponing grocery shopping. Hardware spending declined in 2022.%, and decreased by 0.6% in 2023.
Looking at the expected growth rate in 2023, the list of technologies that will maintain its position in the market and help drive business becomes clear. The data center market has sufficient spending percentages to service on-premises data centers currently in use, while all new spending will flow into cloud computing options, with software spending expected to increase by 11.3% through 2023.
All industries in the MENA market will witness further growth in 2023. The software industry is expected to register the highest growth rate in the region until 2023. CIOs in the Middle East and North Africa will follow in the footsteps of their global counterparts by spending cautiously. However, this will not reduce their investment in technology to gain flexibility in the future and reduce business risks.
When economic conditions are poor or bad, it is common to cut costs, including IT costs. However, a July 2022 Gartner survey of more than 200 CFOs found that 69% plan to increase their spending on digital technologies, while a 2023 Gartner CIO and Chief Information Officer survey found CIOs should be responsible for accelerating the investment of time. to take advantage of digital technologies. .
Burt added, “Companies will primarily use digital technologies to reshape their revenue streams, add more modern products and services, diversify the cash flow portions of existing products and services, and change the value proposition. These trends have helped move away from procurement technology and design, and group them to meet specific needs to drive speed.” Business, and the backlog of digital transformation projects and initiatives is witnessing an increase in office operations and operational needs in other departments compared to the IT department.
Gartner's technology spending forecasting methodology is based on a rigorous analysis of sales results for a broad range of technology products and services at more than 1,000 technology companies. Gartner also uses primary research techniques along with secondary research resources to compile a comprehensive database of market size details on which these projections are based.
Quarterly IT spending forecasts allow Gartner to provide a unique perspective on IT spending across hardware, software, and ICT services. These reports help Gartner clients understand market opportunities and challenges.