Kiwi IT spends to reach $ 12.8 billion this year

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Industry analyst Gartner predicts that New Zealand’s IT spending will reach $ 12.8 billion in 2021. This is a 2.7% year-on-year increase, a recovery from last year’s shrinking spending.

Last year, local spending fell 1.6% year-on-year, according to Gartner data. Similar to the return to growth, this represents an increase above the pre-pandemic level of $ 12.7 billion in 2019.

Analyst firms predict that the biggest growth will come from enterprise software, which is expected to grow by 7.4%, and devices, which is expected to grow by 4.9%.

IT services are expected to increase spending by 2.5% year-on-year, while telecommunications services are expected to shrink slightly by 0.3%. This is an improvement from the 4.2% reduction in 2020.

Meanwhile, data center system spending is projected to decline by 2% this year, somewhat less than last year’s 2.7% decline.

This year, new dynamics of IT spending are expected to sneak in as organizations seek to establish long-term solutions after COVID.

“Last year, IT spending took the form of a’kneeling’reaction, enabling remote employees within a few weeks. As hybrid work takes hold, CIOs will focus on spending that enables innovation, not just task completion, “said John David Washington, Gartner’s prominent research vice president.

Globally, all IT spending segments, from data centers to enterprise software Positive growth is expected by 2022, with overall IT spending projected to reach US $ 4.1 trillion in 2021., 8.4% increase from 2020.

Gartner shifts its focus to providing a more comfortable, innovative and productive environment for devices such as laptops, desktops, tablets, mobile phones (up 14%) and enterprise software (up 10.8%). Predicts maximum growth from. For their workforce, Lovelock said.