IT budgets - Statistics & Facts

As the digital transformation is underway and accelerating in many industries, the IT infrastructure of organizations, mostly business enterprises but also government structures, is becoming more and more crucial to an organization’s success. The overall global spending of businesses and governments on tech goods and services is a trillion-dollar industry today with IT purchases amounting to more than 3.5 trillion U.S. dollars in 2019. The spending is distributed across six segments with software and tech consulting, and system integration services showing the highest growth over the past few years.

IT budget structure

Overall, companies spend around eight percent of their annual revenue on their IT budget with variations between different industries. The spending share is, for example, significantly higher in the financial services industry than in the retail sector as the need for IT services and goods are more or less pronounced depending on the industry. The size of the company also plays a role in how businesses allocate their IT budget. Smaller companies tend to spend a higher share on software and hardware whilst larger companies have a greater demand for managed services.

IT priorities and challenges for companies worldwide

Digital transformation, cybersecurity, cloud-first / cloud migration, and improving customer experience are named as the top priorities by executives and high-level managers in IT today. Many organizations are already implementing IT transformation initiatives with virtualizations, data management automation, and hyper-converged infrastructure, the most common. Two significant challenges and barriers to drive and make the changes are budget constraints and the time required to manage legacy infrastructure. 

Preliminary impact of coronavirus (COVID-19) on IT budgets

The outlook currently is for IT budgets to stay flat in 2020 compared to 2019. The forecast growth for total IT spending in 2020 has been cut from around five percent to an increase of only between 1.3 and 3.7 percent in 2020. However company IT budgets for 2020 might still take a steeper hit and decline as not all the spending currently put on hold or cut will be offset by the increasing demand and spending on work from home infrastructures. The work from home market includes products and services such as collaboration, video, and virtualization tools and solutions, virtual private networks, upgrades to networks, and devices (smartphones, laptops).

Interesting statistics

In the following 8 chapters, you will quickly find the 49 most important statistics relating to "IT budgets & investments".

IT budgets & investments

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Budget allocation

Priorities & challenges

IT vendors worldwide

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