LONDON--(BUSINESS WIRE)--Fifty percent of enterprises believe they are well advanced in the shift to sustainable IT according to Omdia’s ninth IT Enterprise Insights Report. Sustainable IT, becoming more critical in 2022, 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.
However, preempting 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. 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 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 spend.
Key takeaways from the report include:
- 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.
- The pandemic has accelerated digital transformation programs for most enterprises, with 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 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. “It is reassuring to learn from our survey that addressing capabilities to comply with a digital world post-Covid-19 as well as commitment to a corporate ESG agenda are planning priorities as they will no doubt provide organizations 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. This report provides invaluable data to help organizations make informed business decisions,” added Mayo.
Omdia's annual IT Enterprise Insights research helps IT suppliers understand the changing needs of their customers and ensure their strategies align with customer needs. To conduct the research for the 2022 Enterprise Technology Buying Trends report, Omdia interviewed over 6,250 senior IT executives on their organizations’ investment plans and priorities across 60 countries, 14 industry sectors and 80 technologies.
The 2022 IT Enterprise Insights data is available for purchase or subscription here.
ABOUT OMDIA:
Omdia is a leading research and advisory group focused on the technology industry. With clients operating in over 120 countries, Omdia provides market-critical data, analysis, advice, and custom consulting.
Omdia was formed in 2020 following the merger of IHS Markit, Tractica, Ovum and Heavy Reading. Sitting at the heart of the Informa Tech portfolio, Omdia reaches over four million technology decision makers, influencers and practitioners that form part of the wider Informa Tech community and has specialist research practices focusing on Enterprise IT, AI, Internet of Things, Communications Service Providers, Cybersecurity, Components & Devices, Media & Entertainment and Government & Manufacturing.
For more information about Omdia, please visit www.omdia.com
Stay connected with Omdia on Facebook, LinkedIn, Twitter and YouTube.
