More than 50% of IT buyers expressed plans to raise IT budgets in 2023, compared with only 6% that will reduce their spending, even though 83% expressed concerns regarding the impact of a recession next year on their businesses, The Register reports.
Moreover, 68% of companies looking to curb overall spending next year are still considering higher IT expenditures, according to Spiceworks Ziff Davis' 2023 State of IT report. While nearly 40% of the increased budget will stem from inflation, IT spending will be primarily allocated to replacing outdated systems, noted Jim Rapoza, vice president and principal analyst at Aberdeen Strategy and Research, a subsidiary of SWZD.
"Businesses that invested in technology during the pandemic saw significant benefits. Our research revealed improvements across performance, reliability, security, and even reduced overall IT costs among organizations that modernized their infrastructure even if it was initially out of necessity," said Rapoza, who added that the pandemic has prompted many corporate leaders to prioritize IT.