Skills gap and inflation means a good year for tech consultants
Worldwide IT spending will grow 5.1% in 2022 and reach a total of USD 4.5 trillion. Despite the potential impacts of the Omicron variant, economic recovery with high expectations for digital market prosperity will continue to boost technology investments, marketing and research firm Gartner says in a forecast.
The company predicts that staff skills gaps, wage inflation and the war for talent will push chief information officers to rely more on consultancies and managed service firms to pursue their digital strategies.
The IT services segment – which includes consulting and managed services – is expected to have the second highest spending growth in 2022, reaching USD 1.3 trillion, up 7.9% from 2021. Business and technology consulting spending, specifically, is expected to grow 10% in 2022.
”Through 2025, organizations will increase their reliance on external consultants, as the greater urgency and accelerated pace of change widen the gap between organizations’ digital business ambitions and their internal resources and capabilities”, Gartner says.
“This will be particularly poignant with cloud as it serves as a key element in achieving digital ambitions and supporting hybrid work,” said John-David Lovelock, research vice president. “Gartner expects the vast majority of large organizations to use external consultants to develop their cloud strategy over the next few years.”
In 2020, within the enterprise application software market, the cloud market became larger than non-cloud market for the first time, due in part to the coronavirus pandemic. By 2025, Gartner expects it to be double the size of the non-cloud market.
Cloud is responsible for nearly all of the 11% spending growth within the enterprise software segment in 2022 as organizations focus on upgrading their software stack to software-as-a-service (SaaS) to support continued flexibility and agility.
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