IT spend in 2024 – Indigo 21

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IT spend in 2024

IT spend in 2024

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January 2, 2024

Information technology services keep the world trading, working and turning. With worldwide IT spending set to total $5.1 trillion in 2024, what will the increase mean for the BPO industry?

Huge investment in IT services

Gartner released its annual report forecasting IT spending in 2024, and the figures show a promising recovery for the industry. Split across predicted spending on data centre systems, devices, software, IT services and communication services, it is software and IT services seeing the biggest increases compared with 2023, of 13.8% and 10.4% respectively. Gartner predicts that most of the money will be spent on cloud-based services, boosting businesses around the world with better connectivity and space-saving solutions — no more bulky server rooms, for example.

The report also details a 13.8% increase in global spend on software, also noting the preference for cloud-based software. With the majority of BPO software developers using cloud servers and cloud-based software, this increase in spending can only be good news for the BPO industry.

Cybersecurity spend increasing

Another area highlighted for IT spending is on cybersecurity software. This increased awareness of business security seems to be a focus for many leaders around the world. Gartner surveyed 2,457 global CIOs, and 80% of them reported that they planned to increase their spending on cybersecurity in 2024.

Why the focus on cybersecurity? GenAI has shown many opportunities for growth, but also many challenges to the IT industry, one of them being the cybersecurity risk of increasingly smart AI applications. We’ve already explored the challenges of cybersecurity in the BPO industry in a previous blog post, and Google Cloud reported some of the biggest reported challenges for 2024:

  • Disruptive hacktivism
  • Wiper malware
  • Zero-day vulnerabilities
  • Sleeper botnets
  • Supply chain attacks

Out of Gartner’s surveyed CIOs, just 9% have already deployed GenAI technologies in their organisations, but 55% said they will start to roll it out over the next two years. How can we keep the BPO industry safe? By continuing to invest in cybersecurity we need to keep everyone’s business safe and running securely. If you need additional support for your in-house IT teams, we can provide you with highly skilled offshore teams to keep everything running smoothly.

How the BPO industry will benefit

An increase in spending helps all IT businesses. With extra investment, the BPO industry will continue to grow and thrive. The BPO industry in the Philippines is set to grow by 7% in 2024, and by working with companies around the world, it’s showing no signs of slowing down. For more information on how outsourcing can help your business, contact us today.

Sources

https://www.gartner.com/en/newsroom/press-releases/2023-10-18-gartner-forecasts-worldwide-it-spending-to-grow-8-percent-in-2024

https://www.gartner.com/en/newsroom/press-releases/2023-10-17-gartner-survey-of-over-2400-cios-reveals-that-45-percent-of-cios-are-driving-a-shift-to-co-ownership-of-digital-leadership

https://indigo21.com/the-state-of-cybersecurity/

https://services.google.com/fh/files/misc/google-cloud-cybersecurity-forecast-2024.pdf

https://manilastandard.net/business/economy-trade/314393904/bpo-industry-expected-to-grow-7-in-2024.html

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