Worldwide IT spending will increase to $4.5 trillion in 2023, an increase of 2.4 per cent, according to forecasts by Gartner.

The technology research firm said that forecasts were down on previous predictions of just over five percent.

Spending on IT is expected to remain strong, with Gartner describing IT investments as ‘recession proof’. However, the organisation warned that inflation will continue to eat into consumer purchasing power.

Commenting on the research John-David Lovelock, distinguished VP analyst at Gartner, said that the economy had caused some chief executives to become more hesitant, delay decisions or reorder their priorities.

He added: “We’ve seen this in action with the reshuffling taking place among some B2B companies, especially those that overinvested in growth. However, IT budgets are not driving these shifts, and IT spending remains recession-proof.”

Garner also said that there was high competition for skilled IT staff, with companies struggling to grow and scale without the right talent.

Lovelock said: “Skilled IT workers are migrating away from the enterprise CIO towards technology and service providers (TSPs) who can keep up with increased wage requirements, development opportunities and career prospects.”

The IT services market is continuing to grow, as companies bring in outside IT staff for support. Spending on IT consulting is expected to reach $264.9 billion in 2032, a 6.7 per cent increase from 2022.

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