51% of IT Companies Plan to Increase Expenditures Despite Inflationary Pressure

We are undergoing one of the worst periods of global inflation in recent memory, but in spite of the fact that this is the case the IT industry doesn’t seem to be feeling the heat. Researchers at Spiceworks Ziff Davis recently conducted a survey that revealed that 51% of IT firms plan to increase spending year on year, with just a meager 6% claiming that they intend to reduce expenses due to the economic crunch being brought about by inflation.

This data comes from the State of IT report that this firm puts out every year, and with all of that having been said and now out of the way it is important to note that this year’s edition involved a survey of around 1,400 IT industry leaders across North America and Europe. Businesses in this industry are expected to increase spending by as much as 21% on average because of the fact that this is the sort of thing that could potentially end up helping them acquire new equipment and train their staff.

A major aspect of this increase in expenditure is the shift to remote work. Cyber security needs to be improved in order to make remote work viable, and that indicates that IT is one of the most inflation resistant industries out there in the present era.

Last year, only about 33% of firms planned to increase spending, and this has gone up to 53% for 2022 and 51% in 2023. That seems to suggest that IT companies have seen returns on their investments, and they would be willing to keep funneling more money into their IT budgets with all things having been considered and taken into account.

Additionally, fewer companies are planning to reduce their IT budgets. In 2022, it is estimated that 7% of IT companies want to decrease expenses, and this is going to fall to just 6% by next year. An increasing proportion of IT companies are also using an unchanged budget, so they might be reaching some kind of an equilibrium that facilitates ideal growth in the current economic scenario.

Read next: People have started cutting down on expenses they don’t need and you might be surprised to learn that it isn’t because of inflation
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