IT Spending Is Trending Up: How Healthy Is Your Tech Budget?

IT spending is on the rise with $3.9 trillion on tap for 2020. Find out why other companies are willing to spend on tech resources and why you should too.

Why Your Organization Must Invest in IT Solutions in 2020

IT spending is on the rise with $3.9 trillion on tap for 2020. Find out why other companies are willing to spend on tech resources and why you should too.  

Spending on technology is trending up, which probably doesn’t surprise many business leaders. Automation, cyber-security, cloud systems — these are just a few innovations that continue to support faster processes, increased revenues and better customer service in every industry. But the scale of IT spending might surprise you. According to Gartner, global IT spending should hit a total of $3.9 trillion in 2020. That’s a 3.4% increase year-over-year, and the trend doesn’t stop there. Gartner believes tech spending will surpass $4 trillion in 2021.

It stands to reason that IT spending in various organizations is also trending up. Gartner’s VP of research, John-David Lovelock, points to one reason this is the case, noting that CIOs are spending on tech initiatives that cut other organizational costs without hurting the quality of products and services. Discover more reasons that your organization needs a healthy tech budget in 2020 and beyond below.

Cyber-Security Is Paramount

No one’s immune to hackers. In fact, close to 60% of all businesses report past cyber-attacks. And that’s a conservative number, since only around 10% of cybercrimes that occur annually in the United States are even reported. Many times, the business being attacked doesn’t even realize it.

The cost of these attacks can be enormous. According to IBM, data breaches cost businesses an average of $3.86 million per incident.

It’s simply good financial sense to invest money into technical resources and experts who can reinforce your cyber-security and protect your digital assets and data.

Data Just Keeps Growing

The world generates a lot of data — best estimates are more than 7 septillion gigabytes. That’s a number with 24 zeros in it. Obviously, businesses don’t house, generate or use this much data, but polls repeatedly show that companies aren’t able to fully manage the data they are dealing with. Around 55% of data collected is considered dark data — data the organization can’t or doesn’t use.

Common reasons for dark data include not having the tools necessary to capture or analyze the information, incomplete data sets or simply too much data to deal with. And 46% of businesses say they don’t even know where all their sensitive information is housed to begin with.

These are all compelling reasons to invest in tech resources and partnerships. Data is a valuable asset, and the ability to store it property and access it effectively helps drive decision-making processes that best position businesses for success now and in the future.

Downtime Is Not An Option

More than half of all people will navigate away from a mobile webpage if it takes more than 3 seconds to load. It’s simply too easy to tap or swipe to something else, and those habits are impacting the rest of daily life. While clients do wait more than 3 seconds, they have options and aren’t typically afraid to exercise them. Technical downtime during business hours is not an option whether you’re delivering services via a website, on the phone or in person.

In addition to detracting from customer service, IT downtime is costly. On average, organizations spend around 200 minutes fixing a single downtime issue, and each non-tech employee spends around 30 minutes a week addressing a computer problem.

Investing in strong IT support, redundancy and intelligent architecture can reduce the amount of expensive downtime you deal with.

IT Outsourcing Provides Value While Keeping Spending in Check

Getting the most out of your tech budget might mean working with an IT outsourcing partner. Your tech needs don’t remain the same year round, and hiring experts to implement a solution may leave you paying IT salaries even after the bulk of the daily work is done. Whether you need to augment your existing staff or tackle a specific concern such as security, IT outsourcing lets you manage your necessary IT budget to support business processes without decimating the bottom line.