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.
TIKR
IBM
PRICE
$134.70
TARGET PRICE
$143.56
UPSIDE
+6.58$
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%).