IT spending in the Middle East and North Africa region is forecast to total $178.1 billion in 2023 growing 3.1% from 2022, according to Gartner, Inc.<\/p>\n\n\n\n
Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by Gartner, Inc. Demand for IT in 2023 is expected to be strong as enterprises push forward with digital business initiatives in response to economic turmoil.<\/p>\n\n\n\n
\u201cEnterprise IT spending will be robust as\u00a0CEOs and CFOs, rather than cutting IT budgets,\u00a0are increasing\u00a0spending on digital business initiatives,\u201d said\u00a0Miriam\u00a0Burt, Managing VP Analyst at Gartner. \u201cEconomic turbulence will change the context for technology investments, increasing spending in some areas and accelerating declines in others, but it is not projected to materially impact the overall level of enterprise technology spending.<\/p>\n\n\n\n
\u201cHowever,\u00a0inflation has cut into consumer purchasing power in almost every country around the world.\u00a0Consumer purchasing power has been reduced to the point that many consumers are now deferring 2022 device purchases until 2023, driving spending on devices down 8.4% in 2022 and 0.6% in 2023.\u201d<\/p>\n\n\n\n
The technologies that are being maintained versus those that are\u00a0driving the business\u00a0are evident by their projected growth rates in 2023. There is sufficient spending within data center markets to maintain existing on-premises data centers, but new spending continues to shift to cloud options, as evidenced by the 11.3% projected growth for software spending in 2023 (see Table 1).<\/p>\n\n\n\n
<\/a>Table 1. Worldwide IT Spending Forecast (Millions of U.S. Dollars)<\/strong><\/p>\n\n\n\n Source: Gartner (December 2022)<\/p>\n\n\n\n In MENA, all segments will grow in 2023. Software segment is forecast to record the highest growth in MENA in 2023 (see table 2). MENA CIOs will follow the spending trend of their global peers by being cautious about the spending yet will not cut down on investing in tech for future resilience and to reduce business risk.\u00a0<\/p>\n\n\n\n Table 2. MENA IT Spending Forecast (Millions of U.S. Dollars)<\/strong><\/p>\n\n\n\n Source: Gartner (December 2022)<\/p>\n\n\n\n Organizations Continue to Protect Efficiency-Driven Digital Investments<\/strong><\/p>\n\n\n\n In a down or deteriorating economy, conventional wisdom calls for reducing costs, including IT costs. However, a July 2022 Gartner survey of more than 200 CFOs found that 69% plan to increase their spend on\u00a0digital technologies, while the\u00a02023 Gartner CIO and Technology Executive Survey\u00a0found that CIOs are being tasked with accelerating time to value on digital investments.<\/p>\n\n\n\n \u201cCompanies will use digital technology primarily to reshape their revenue stream, adding new products and services, changing the cash flow of existing products and services, as well as changing the value proposition of existing products and services,\u201d said Burt. \u201cThis trend has fed the shift from\u00a0buying technology to\u00a0building, composing and assembling technology to meet specific business drivers with agility. This shift is foundational to the growth of cloud over on-premises for new IT spending.<\/p>\n\n\n\n \u201cHowever, as organizations look to also realize operations efficiency, cost reductions and\/or cost avoidance during the current economic uncertainty, more traditional back-office and operational needs of departments outside IT are being added to the digital transformation project list.\u201d<\/p>\n\n\n\n More detailed analysis on the outlook for global IT spending is available in the Gartner webinar\u00a0\u201cIT Spend Forecast, 3Q22: Is IT Spending Recession Proof?\u201d\u00a0\u00a0Learn about the top priorities for CIOs in 2022 in the complimentary Gartner ebook\u00a02022 Leadership Vision for Chief Information Officers.<\/p>\n\n\n\n Gartner\u2019s IT spending forecast methodology relies heavily on rigorous analysis of the sales by over a thousand vendors across the entire range of IT products and services. Gartner uses primary research techniques, complemented by secondary research sources, to build a comprehensive database of market size data on which to base its forecast.<\/p>\n\n\n\n The Gartner quarterly IT spending forecast delivers a unique perspective on IT spending across the hardware, software, IT services and telecommunications segments. These reports help Gartner clients understand market opportunities and challenges. The most recent IT spending forecast research is available to Gartner clients in\u00a0\u201cGartner Market Databook, 3Q22 Update.\u201d<\/p>\n\n\n\n About Gartner for High Tech<\/strong><\/p>\n\n\n\n Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organizations of tomorrow. Additional information is available at\u00a0www.gartner.com\/en\/industries\/high-tech.<\/p>\n\n\n\n Follow news and updates from Gartner for High Tech on Twitter\u00a0and\u00a0LinkedIn\u00a0using #GartnerHT.<\/p>\n\n\n\n About Gartner<\/strong><\/p>\n\n\n\n Gartner, Inc. (NYSE: IT) delivers actionable, objective insight to executives and their teams. Our expert guidance and tools enable faster, smarter decisions and stronger performance on an organization\u2019s mission critical priorities. To learn more, visit\u00a0gartner.com.<\/p>\n","protected":false},"excerpt":{"rendered":" IT spending in the Middle East and North Africa region is forecast to total $178.1 billion in 2023 growing 3.1% from 2022, according to Gartner, Inc. Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by Gartner, Inc. Demand for IT in […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"categories":[2],"tags":[],"class_list":["post-19229","post","type-post","status-publish","format-standard","hentry","category-news"],"rttpg_featured_image_url":null,"rttpg_author":{"display_name":"admin","author_link":"https:\/\/web3unplugged.io\/blog\/author\/admin\/"},"rttpg_comment":0,"rttpg_category":"news<\/a>","rttpg_excerpt":"IT spending in the Middle East and North Africa region is forecast to total $178.1 billion in 2023 growing 3.1% from 2022, according to Gartner, Inc. Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by Gartner, Inc. Demand for IT in…","_links":{"self":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/19229","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/comments?post=19229"}],"version-history":[{"count":1,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/19229\/revisions"}],"predecessor-version":[{"id":19231,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/posts\/19229\/revisions\/19231"}],"wp:attachment":[{"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/media?parent=19229"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/categories?post=19229"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/web3unplugged.io\/blog\/wp-json\/wp\/v2\/tags?post=19229"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/td> 2021 Spending<\/strong><\/td> 2021<\/strong>Growth (%)<\/strong><\/td> 2022 Spending<\/strong><\/td> 2022<\/strong>Growth (%)<\/strong><\/td> 2023 Spending<\/strong><\/td> 2023<\/strong>Growth (%)<\/strong><\/td><\/tr> Data Center Systems<\/td> \u00a0189,506<\/td> \u00a06.1<\/td> \u00a0209,190<\/td> \u00a010.4<\/td> \u00a0216,262<\/td> \u00a03.4<\/td><\/tr> Software<\/td> 732,030<\/td> 14.8<\/td> 790,385<\/td> 8.0<\/td> 879,625<\/td> 11.3<\/td><\/tr> Devices<\/td> 807,580<\/td> 15.8<\/td> 739,982<\/td> -8.4<\/td> 735,394<\/td> -0.6<\/td><\/tr> IT Services<\/td> 1,207,966<\/td> 12.8<\/td> 1,258,150<\/td> 4.2<\/td> 1,357,914<\/td> 7.9<\/td><\/tr> Communications Services<\/td> \u00a01,459,483<\/td> \u00a03.8<\/td> \u00a01,435,401<\/td> \u00a0-1.7<\/td> \u00a01,469,220<\/td> \u00a02.4<\/td><\/tr> Overall IT<\/strong><\/td> 4,396,565<\/strong><\/td> 10.2<\/strong><\/td> 4,433,108<\/strong><\/td> 0.8<\/strong><\/td> 4,658,416<\/strong><\/td> 5.1<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n <\/td> 2021 Spending<\/strong><\/td> 2021<\/strong>Growth (%)<\/strong><\/td> 2022 Spending<\/strong><\/td> 2022<\/strong>Growth (%)<\/strong><\/td> 2023 Spending<\/strong><\/td> 2023<\/strong>Growth (%)<\/strong><\/td><\/tr> Data Center Systems<\/td> 3,437<\/td> 8.6<\/td> 3,660<\/td> 6.5<\/td> 3,676<\/td> 0.4<\/td><\/tr> Software<\/td> 11,372<\/td> 13.8<\/td> 11,979<\/td> 5.3<\/td> 13,110<\/td> 9.4<\/td><\/tr> Devices<\/td> 30,805<\/td> 14.8<\/td> 28,139<\/td> -8.6<\/td> 28,449<\/td> 1.1<\/td><\/tr> IT Services<\/td> 15,701<\/td> 16.4<\/td> 16,880<\/td> 7.5<\/td> 18,214<\/td> 7.9<\/td><\/tr> Communications Services<\/td> 111,857<\/td> 0.6<\/td> 112,240<\/td> 0.3<\/td> 114,729<\/td> 2.2<\/td><\/tr> Overall IT<\/strong><\/td> 173,173<\/strong><\/td> 5.2<\/strong><\/td> 172,899<\/strong><\/td> -0.1<\/strong><\/td> 178,177<\/strong><\/td> 3.1<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n