It doesn’t take an expert to identify that the US economy – and really, the global economy – is not at its most stable. Discussions on recession, cost-cutting, and finding efficiencies are everywhere. And in many cases, the IT department is the focus of those looking to free up extra dollars amid economic instability.
At the same time, the tech industry outlook offers stories of innovation, integrations, and new solutions. The contrast is stark. What is the future of an IT industry on the cusp of so many new developments without the funds to pay for them? And which IT spending trends will shape enterprises in 2023?
IT Spending Will Increase
In Digibee’s Top 3 Tech Predictions for 2023, I predicted that IT spending would increase in the coming year, regardless of economic concerns. And experts agree. Rumors of a looming recession aren’t making a dent in IT spending trend forecasts. Analysts are unanimous in economic predictions for 2023:
- Gartner predicts global IT spend will climb 5.1% from 2022 levels to hit $4.6 trillion in the coming year
- IDC says conversations with CIOs indicate spending on core IT infrastructure, software, and services will grow between 5% and 6% regardless of the economy
- Forrester VP Keith Johnston anticipates global tech spending will increase to $4.8 trillion in 2023
A Recession Will Only Drive IT Spend
Why is the business world so confident that IT spending in 2023 will increase when experts say a recession is all but inevitable? As counter-intuitive as it sounds, the challenges that economic downturns may bring will drive IT spending.
If 2020 taught business leaders anything, it’s that continued acceleration is vital to success. Stopping or slowing innovation and growth, even when business is bad, can spell doom. The pandemic offered a hard lesson: prioritizing agility and flexibility is the only way to ensure you’ll survive whatever comes next.
“The main thing we’re hearing from CIOs is that technology is part of solving the business challenges that a recession brings.”IDC analyst Rick Villars
But won’t enterprises looking ahead to tough times seek ways to cut costs rather than making significant investments in new technology? Yes and no.
Once the outcast of the business world, IT departments are viewed less and less as a cost center. A growing number of businesses are recognizing the role IT plays in helping tighten budgets and increase efficiencies. So IT spending trends will be primarily driven by enterprises pushing ahead with the digital initiatives they need to weather looming economic disruptions.
Proactive Solutions Will Protect Business
When times are tough, organizations that pivot to do more with less are the ones who will survive and thrive. Leaders who see what’s coming down the pipeline are already finding ways to do this:
- Increase employee efficiency
- Consolidate tools and systems
- Streamline processes
- Create backup plans to minimize disruptions
And the key to achieving all of these goals, for many organizations, is modernization. Legacy systems and tech stacks loaded up with siloed data are inefficient. They increase the amount of work your team does to use them, and maintenance is costly – and often dependent on hard-to-find experts. Integration, automation, and digital transformation will be the keys to success in 2023.
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Digibee’s unique low-code eiPaaS can help your organization modernize outdated systems and embrace digital-first business models you need to succeed.
A valuable tool in your cost-cutting strategy, our eiPaaS can empower your team to automate or streamline menial tasks, freeing them to focus on continued growth and development. Forrester’s Total Economic Impact of Digibee’s eiPaaS Report 1 demonstrates how Digibee helps enterprises reduce time to market, increase security, and boost revenue.
Want to know more? Let us show you what Digibee can do. Book your choice of a 15-minute Discovery Call, 30-minute Custom Demo, or 60-minute Deep Dive to learn how our enterprise iPaaS can help recession-proof your business.
1 a commissioned study conducted by Forrester Consulting on behalf of Digibee