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Cloud, services to fuel 3.7% jump in EMEA IT spending in 2023: Gartner

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New research from Gartner shows that IT spending in EMEA is set to see a 3.7%, year- over-year increase in 2023, rising to $1.3 trillion.

While companies are often hesitant to sign new contracts or commit to long-term spending initiatives during turbulent times, enterprise IT budgets are not central to this hesitancy, and as a result, businesses in EMEA (Europe, Middle East and Africa) are set to increase their IT budgets in 2023, said Gartner analyst and vice president John Lovelock.

In research released Wednesday at the company’s IT Symposium 2022 in Barcelona, Gartner found that increased spending on cloud software is largely fuelling the spending growth, with EMEA CIOs using cloud-first technologies to drive new initiatives, such as packaged business capabilities (PBCs) and data grids, while maintaining current on-premises environments.

Public cloud services spending in EMEA, meanwhile, is forecast to grow from $111 billion in 2022 to $131 billion in 2023, an increase of 18.2% year over year, Gartner said. Cloud software spending will represent 34% of total enterprise software spending in EMEA.

IT service spend is set to see the second biggest growth rate, rising by 6.6%, as CIOs continue to the lose the battle for talent and are stuck having to employ more IT managed services to plug the gaps, sometimes at great cost.

The research also found that among the most mature markets in Western Europe, UK IT spending is projected to achieve the highest growth rate in 2022, increasing by 8% in British pounds.

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