Despite economic concerns and uncertain indicators, business leaders worldwide intend to continue investing in the coming months in digital initiatives with “market-facing, growth impact.” This is a primary takeaway from research by tech analyst Gartner.
Last year, Gartner polled 2,203 technology decision-makers from 81 countries and all major industries, representing about $322 billion in IT spending. Respondents reported 2023 tech investments will increase about 5% even with downward pressures on spending like inflation.
The study’s results indicate tech leadership continues to prioritize making investments over cost control when pursuing digital transformation:
- Nearly half of the executives surveyed said that for two years they have been investing to improve operational excellence (53%) and the customer experience (45%) and plan to maintain this direction.
- Less than a quarter (22%) of the group said improving cost efficiency is a primary objective.
While much of Gartner’s work involves macro-market movements, these findings also reflect the dynamics of the small to medium-size business (SMB) sector.
According to the U.S. Small Business Administration, more than 99% of all U.S. companies are “small” by definition (i.e., employing fewer than 500 workers). Other researchers also indicate that this substantial cohort also plans to continue IT investments in the face of economic uncertainty.
Research by Spiceworks Ziff Davis found:
- 51% of SMB leaders plan to increase 2023 IT spending by as much as 6% despite 86% of respondents believing the economy is on the cusp of recession.
- Only 6% plan to decrease IT spending in these conditions.
What is your organization’s plan for investing in technology for growth this year? Give us a call to help you craft the right strategy and prioritize your investments.