HG’s 2023 IT Spend & Budget Forecast Report predicts that budgets will continue to hold up even if significant economic contraction occurs
SANTA BARBARA, Calif.–(BUSINESS WIRE)–HG Insights®, the global leader in Technology Intelligence, has released the 2023 IT Spend & Budget Forecast Report, an authoritative IT spend projection that is packed with insights into 700,000 companies’ IT investment plans.
Representing a significant majority of global enterprise spend, the new spend model from HG Insights predicts that companies will increase IT budgets and the global impact will be a 5% growth in external spend on products/services from external vendors. Considering macroeconomic and geopolitical factors, this top-level number is reached by aggregating account-level spend across the universe of companies covered.
“The HG Insights 2023 IT Spend & Budget Forecast Report details the impact on global IT spending of enterprise businesses prioritizing investment in IT while cutting back in other areas due to recent economic uncertainty. This projection of how global enterprises will manage their IT spending over the coming 12 months empowers our customers to complete their 2023 planning with quality insights and act with confidence,” said Elizabeth Cholawsky, CEO, HG Insights. ” Every day our customers benefit from the global, national, and regional insights provided from our IT Spend model, allowing them to be best equipped to plan for changing budget dynamics in their own markets.”
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IT Budgets Are Protected
It is widely understood that there is a degree of uncertainty in how IT spending will change and how different enterprises will respond to current challenges, but HG’s position is to predict continued growth in spending over the next 12 months. IT investment plans are not expected to be materially impacted over that timeframe. In the event that challenges in global markets continue to escalate in the coming months, HG will revisit its projections, but the expectation is that IT budgets will continue to hold up even if significant economic contraction occurs.
The most recent economic uncertainty has led companies to prioritize IT spending and cut back on other areas. Increasingly, IT budgets are seen as protected investments and essential to remain competitive. HG believes we will continue to see companies prioritize IT investments in both the current economy and if economic conditions worsen.
As such, hardware spend is forecast to increase by 8%, driven largely by global investments in server and storage spend, underpinning the ongoing migration towards the cloud. Software spend is forecast to increase by 11%, with strong demand expected across application development, enterprise applications, and infrastructure.
CTO Rob Fox said, “This top-level global number is reached by aggregating account-level spend across the universe of companies covered using our best-in-class spend analysis and cleansed firmographics. HG is the only comprehensive provider of Technology Intelligence that combines tech install and consumption trending, cloud usage dynamics, contract insights, Contextual Intent signals, spend dynamics, and department-level insights to enable the identification of companies with the highest propensity to buy your products or services at the right time with the right message. The fact that IT budgets are essential to remain competitive in today’s market further reinforces the need for Technology Intelligence and the actionable insights that come from it!”
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About HG Insights
HG Insights, global provider of data-driven insights to 90% of Fortune 100® B2B tech companies, continues to push the envelope of what can be accomplished with Technology Intelligence to improve business outcomes.
As the number one authority in Technology Intelligence — using advanced insights into IT installations, spend, and contract details paired with cloud product usage, adoption, and spend — HG Insights provides B2B companies with a better way to analyze markets and target prospects. HG’s customers achieve unprecedented results in their marketing and sales programs thanks to the indexing of billions of unstructured documents each day to produce a detailed census of the technologies companies use to run their businesses.
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