In this article you can observe 10 key outputs based on the findings of a survey of IT executives on the planned costs and strategic priorities of their organizations in the IT sector.
Here are the main findings on the budgeted spending and strategic goals of top companies in the IT services and corporate software sectors, as well as cybersecurity:
1) IT Services Vendor View: Among Diversified IT Services, INFY, IBM, and DXC had the most favorable relative spending intentions; in contrast, DAVA & TWKS performed better in the category of Digital Product Engineering. Diverse Services conveyed, on average, a higher mix of exposure to mission-critical services, indicating spend insulation.
2) Data/Analytics is the top enterprise software investment priority, with spending predicted to increase by 8.1% Y/Y, outpacing the other 4 major categories. This is encouraging for businesses like AYX, CFLT, and SNOW.
3) Back Office Continues Its Strengthening Cycle: ORCL, SAP, and WDAY are encouraged by the fact that the Back Office is once again experiencing the strongest spending growth of the 5 key categories, with growth predicted to increase to 6.8% in '23 from 5.6% in '22.
4) IT Services Forecast Moderate: Pricing levels off and growth is expected to be slower than in recent years by 2023. 2.1% budget growth for IT services slows -30 basis points year over year and behind. 5.7% growth in the overall IT budget. Although there is no obvious contraction, 52% of respondents mention lackluster outlooks.
5) Modest Enterprise Software Outlook: Compared to 8.3% in '22, our survey predicts a 7.3% budget growth in '23. ITSM is ranked first in SaaS.
6) A Few Changes In Developing Software Take Shape: From #4 last year, AI/ML and Data Science have risen to the top investment priority in Emerging Tech. CDP/Customer Engagement fell from first to first to sixth.
7) Cybersecurity Is Still Vital: 44% of respondents predict increases over 10%, and 91% anticipate higher security spending in 2023.
8) Data Protection and Cloud Security are the top priorities for cybersecurity. The focus on data and cloud security among decision-makers is growing as a result of regulation and high-profile incidents.
9) Online safety vendor learnings: Positive survey indicators were produced by CHKP, CRWD, CYBR, FORG, FTNT, KNBE, NET, OKTA, PANW, S, VRNS, and ZS. These suppliers are offering product portfolios and platforms that are well-positioned strategically.
10) Automation is essential: Two-thirds of respondents either are or plan to evaluate RPA in 2023. 72% of those who have deployed RPA or are in the proof-of-concept expect it to increase spending. The vendor with the most citations (68%) was PATH, followed by Microsoft (41%).