Sustainable IT will become more critical in 2022 and over the next decade, as well as over the coming decade, was identified as a key investment area by climate-conscious senior IT executives interviewed for Omdia’s annual survey – IT Enterprise Insights Report.
Pre-empting business disruption was deemed the highest priority item on the business planning agenda as the world returns to some semblance of normalcy post-pandemic. The report found that 59% of organizations expect to increase technology spending in 2022.
The pandemic has accelerated digital initiatives exponentially. IT budget growth plans by industry align with revenue outlook expectations in each sector, but in most vertical sectors, the proportion planning IT spend growth is higher than those envisioning revenue growth.
Sector growth
The research shows strong IT growth plans (over 6% growth) are especially pervasive in healthcare (33%), utilities (31%), life sciences (31%), and manufacturing (28%).
The financial markets industry has also seen a strong change in the proportion of institutions planning strong IT spend growth (8% in 2021 to 24% in 2022) as has retail (11% in 2021 to 24% in 2022) and utilities (13% to 31%).
IT budget growth plans for 2022 are evident globally, with over 55% of enterprises expecting growth across all regions. South Asia is the strongest growing region, led by India, where one-third of enterprises expects strong IT spending.
Key takeaways
IT sustainability
Sustainable IT is only a top IT priority for 12% of enterprises, however, 50% of enterprises believe they are well advanced in the shift to create sustainable IT. Industries rating themselves most advanced in the move to IT Sustainability include telecommunications, retail, and media. Sustainable IT will become more critical in 2022, as well as over the coming decade.
IT priorities
Security and digital are the top two IT priorities. A key shift for 2022 is building a modern workplace – supporting mobility, remote/hybrid working models and remote collaboration – which came in third place.
Revenue impact
The outlook for enterprise IT vendors continues to look positive in 2022. Industries anticipating the most beneficial revenue impact from the pandemic include healthcare, life sciences & pharmaceuticals, and telecommunications.
IT spending during the pandemic
The pandemic has accelerated digital transformation programs for most enterprises, with the increased importance of digital for both client and employee interaction driving greater executive support for digital initiatives.
Most enterprises are therefore looking to increase IT expenditures in 2022, however, expectations in terms of experience and adaptability have shifted during the pandemic, and enterprises need to rapidly deliver continued innovation for both employees and customers over 2022.
IT budget growth expectations are generally stronger for 2022 than seen in 2021, with 59% of enterprises expecting IT spending to grow in 2022 compared to 43% that have seen growth in 2021.
The proportion expecting strong growth (6%+) has doubled from 11.5% to 23%, with a decline also seen in the proportion of enterprises planning to reduce IT spending (24% in 2021 to 18% in 2022).
“The rapidly changing business landscape is increasingly impacting IT strategy and investment,” said Daniel Mayo, Omdia’s senior research director for Enterprise IT.
The survey revealed that address capabilities to comply with a digital world post-Covid-19, as well as a commitment to a corporate ESG agenda, are planning priorities as they will no doubt provide organizations with the necessary edge to remain competitive.
“It’s imperative that industry IT suppliers understand enterprise needs at a country and industry level to ensure that their product, marketing, and sales strategies are aligned to customer requirements,” Mayo concluded.
