Despite strong headwinds, enterprises leaders committed to IT spending

The current inflationary trends and other macroeconomic headwinds created speculations around IT spending in the coming years. However, our recent HFS Pulse data reveals that even as times get harder, IT spending will continue to increase in 2023.

• Seventy percent of executives project an increase in spending in line with expectations that inflation is not impacting their business or industry. It suggests enterprises’ ongoing digital transformation initiatives, tech investments, and other planned strategies will persist because leaders saw significant results from the IT investments they made during the pandemic.
• Digital transformation journeys demand fundamental changes in enterprises’ underlying processes and operating models. Current macroeconomic conditions forces leaders to focus on transformative changes so they can benefit from emerging technologies. In this context, we foresee increased spending on the hybrid cloud, a refreshed look at automation, cyber security, platforms, and SaaS, all of which are crucial and tied firmly to core business enablement.
• From an execution standpoint, enterprises will continue to leverage service providers’ support to sort out the skilled IT talent crunch and staff reduction challenges. Third-party service providers’ deep expertise and best practices are critical to help implement and manage technology investments.

The Bottom Line: Enterprises don’t want to risk progress and future benefits for short-term savings.

Enterprise leaders’ investment mindset suggests that they need to carry on despite the inflation and recession trends. Many enterprises are in the middle of transformation journeys, seeking changes to achieve business outcomes. While efficiency and cost metrics may rise to the top in the near term, topline growth is a constant need. Organizations are less likely to slow down their IT spending because they don’t want to risk their progress and future benefits and revenue for short-term savings. Enterprises must set the digital foundation right to achieve outcomes, better customer experience, and competitive advantage.

Explore the HFS Pulse Dashboard

Take a look at the breadth of data in our Pulse Dashboard, which showcases data about current and future demand trends for technology and business services and related emerging technologies. See more here.