2 min Devops

Despite macroeconomic concerns, tech spending remains steady

Despite macroeconomic concerns, tech spending remains steady

Despite Inflation, Sky-rocketing Energy & Home Prices, Supply Chain Issues, and a global crisis regarding Ukraine, information technology buyers and chief information officers expect more than a 6% raise in tech spending in 2022.

Although the prediction made in January was that an increase of 8% would be seen, this statement became contradictory to the previous one. But, fret not because, in this breaking analysis, we’ll help you understand how 6-7% growth is still good in terms of spending trajectory.

In the past two months’ dozens of conversations between CIO, data executives, IT managers, chief data officers, and application developers have been held.

The summary of these conversations stated that, at least for now, spending in the IT sector remains unchanged. The latest ETR Drill-Down data confirm these anecdotal checks.

The massive reason behind spending levels remaining stable is because of inflation. Product costs are increasing day by day. Therefore, spending levels are also increasing, forcing IT managers to prioritize costs.

Aside from that, security also remains the no.1 priority that can’t be cut from an enterprise’s budget. So, the question is, where are the CIOs managing to afford this increase in the budget? The answer may be a bit speculative, but we have seen certain IT projects being put on hold.

The ETR data states that reports of hiring freezes have been seen, especially in the health care sector. According to a buyer base survey that ETR conducted to find out where companies were adjusting their budget, the most cited tactic was consolidating IT Vendors.

The ETR survey also cited that cutting the cloud bill where discretionary came into play was also a good advantage that brought revenue to the industry.