Gartner Report: 2022 ICT spend to hit A$100 billion+

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ICT procurement teams in Australia are set for another busy year with spending on technology products and services projected to exceed $109 billion down under in 2022. 

Gartner has revealed ICT spend forecast for the next 12 months is predicted to grow 6.5% on 2021 figures.

The research firm says the largest IT spending segment in Australia is IT services, particularly in consulting services, which is expected to grow from $7.4 billion last year to reach $10.5 billion in 2025.

John-David Lovelock, research vice president at Gartner, says growth rates of around 5% to 6% are expected to continue for the next few years” – driven by business rather than consumer spending. 

“Organisations are entering a new build phase as they accelerate the shift to digital business,” Lovelock says. “There’s a lot more to do and less time to do it, and they need consulting services to help them get it done in time.”

Enterprise software is forecast to show the biggest chunk of growth in 2022, with an increase of 14.2% from 2021. 

Worldwide IT spending is projected to total $4.5 trillion in 2022, an increase of 5.1% from 2021 Gartner research indicates. 

Source: Gartner

A shift in activity for CIOs

Lovelock says 2022 will see a shift for CIOs with the need to “embrace business composability” when compared to the last two years in the grip of the pandemic. 

Composability allows companies to break down bulky, monolithic applications into discrete components, each of which can then be built, scaled, and maintained independently. (CIO.com)

“What changed in 2020 and 2021 was not really the technology itself, but people’s willingness and eagerness to adopt it and use it in different ways,” said Lovelock. 

“In 2022, CIOs need to reconfigure how work is done by embracing business composability and the technologies that support it.”

Government IT spending to hit more than $15 billion

In government IT spending, Gartner predicts it to exceed $15.5 billion in 2022, an increase of 8.8% from 2021. 

IT News revealed more than $3 billion was spent on IT through the Federal Government’s Digital Marketplace in nine months last year, as agencies increasingly look to the buying channel to source digital products and services.

Join the deep dive on ICT procurement

As fast as technology is changing, so is best practice procurement of technology. To bring you the latest trends, Procurement and Supply Australasia (PASA) invite you to its virtual IT Day on 3 March 2022 from 9am.

The exclusive event, being led by ICT category procurement experts EUIT, offers a ‘deep-dive’ event into the procurement of IT and its core sub-categories. 

Book your virtual ticket. 

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