Optimization as a Driver of Tech Budget Growth
A contributing factor to planned spending increases is a bigger priority on IT projects, even with a recession looming. Throughout the pandemic technology has enabled employee productivity amid great change. As a result, business leaders’ perceptions of the value of technology have shifted from a “cost center,” to a facilitator of productivity and growth.
Midsize (53%) and enterprise (49%) businesses are roughly twice as likely to increase tech budgets due to increased priority on IT, compared to small businesses (27%). While not the primary driving factor, inflation will be a factor in 40% of 2023 tech budget increases, vs. 22% in 2022.
Other data points indicate optimism among technology vendors. The IT services vertical is most likely to increase their own tech budgets, as well as most likely to expect YoY revenue growth in 2023, compared to other industries.
