Technology is the fuel that drives businesses forward, allowing them to innovate and adapt to meet evolving demands in and outside the workplace. For these reasons, companies continue to invest in information technology, despite the ongoing economic crisis that is otherwise dampening enterprise spending habits.
A new study by IDC echoed the increasing demand that decision-makers allocate a greater portion of their budgets to IT, noting that worldwide spending on IT is forecast to grow 6 percent in 2012 compared to 2011. Although this rate is slightly slower than last year's 7 percent growth from 2010, it suggests that companies still recognize the need to invest in technology, regardless of macroeconomic concerns.
Research found that as more businesses digitize records and leverage document management systems, the need for mobile devices capable of accessing mission-critical resources from anywhere is driving a significant portion of IT investments.
"In spite of economic uncertainty, which continues to inhibit enterprise investment in some tech segments, the continuing demand for tablets, smartphones, storage capacity, and network performance improvements actually outperformed expectations in the first half of the year," said Stephen Minton, vice president in IDC's global technology and industry research organization.
IT spending continues forward
IDC revealed that IT spending in the United States is expected to grow slowly this year, only increasing 5.9 percent in 2012, compared to 8.5 percent in 2011. Still, as organizations become more digital and implement electronic workflow processes, these investments will likely continue growing in the years to come.
"While this has been a tough year for many IT vendors, the overall performance of the industry in the first half of the year has been healthier than many expected," Minton said.
Global IT investments are now forecast to grow 6 percent in 2013, approaching $2.1 trillion in total, IDC reported. In a slightly more optimistic study, Gartner revealed similar findings, noting that worldwide IT spending is likely to reach $3.6 trillion by the end of this year.
"While the challenges facing global economic growth persist - the eurozone crisis, weaker U.S. recovery, a slowdown in China - the outlook has at least stabilized," said Richard Gordon, research vice president at Gartner.
As the business world continues to go digital and more companies embrace document management solutions, IT spending will likely continue growing as companies are forced to embrace technology to remain competitive.