Worldwide Government IT Spending to Grow 6.8%

Published on: Jun 28, 2023
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with improving the citizen experience and engagement, a cohesive total experience (TX) strategy will help governments advance digital skills and literacy in their workforces by providing modern tools and approaches to lessen friction in government work. Failing to build a solid TX strategy increases service friction, leading to risk of service delays and underwhelming service experiences.

In 2023, government IT spending is forecast to increase across all segments except devices, as government end-users extend the useful life of their devices that were acquired at the onset of the pandemic. Software will be the highest growing segment in 2023 followed by IT services and internal services.

Initiatives such as migrating services to the cloud, modernizing applications, and fortifying network security are among the primary innovation priorities that governments are focused on to improve public engagement and satisfaction.

According to the 2023 Gartner CIO and Technology Executive Survey, digital transformation, leveraging and using data effectively and technology modernization are the top three priorities of government CIOs.

Delivering on these priorities depends on establishing a shared, organization-wide digital vision and integrating that vision into enterprise-level strategies. In alignment to these priorities, investments will increase in cybersecurity, application modernization, cloud platforms, integration technologies such as artificial intelligence (AI) and machine learning (ML), and business/data analytics tools.

At the same time, CIOs will have to tackle challenges such as varying stakeholder expectations and developing action plans accordingly. Government CIOs will need to address concerns of digital transformation with mission objectives. They need to work closely with government executives to ensure a shared understanding of vision, roadmap and lin

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    Consumers and enterprises are facing very different economic realities. While inflation is devastating consumer markets, contributing to layoffs at B2C companies, enterprises continue to increase spending on #digitalbusiness initiatives despite the world economic slowdown.

    A turbulent economy has changed the context of business decisions and can cause CIOs to become more hesitant, delay decisions or reorder priorities. We’ve seen this in action with the reshuffling taking place among some B2B companies, especially those that overinvested in growth. However, IT budgets are not driving these shifts, and IT spending remains recession-proof.

    The software and #ITservices segments are projected to grow 9.3% and 5.5% in 2023, respectively. The devices segment is forecast to decline 5.1% this year as both consumers and enterprises lengthen device refresh cycles.

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  • Worldwide IT spending

    #WorldwideITspending is projected to reach $4.6 trillion in 2023 according to the latest forecast by Gartner. This represents an increase of 5.5% from the previous year. The projected growth is primarily driven by enterprise software and cloud services, as well as continued investment in IT infrastructure such as servers, storage, and networking equipment.


    The COVID-19 pandemic has accelerated the shift towards digital transformation and remote work, which is expected to continue to drive IT spending in the coming years. However, there are also concerns about potential supply chain disruptions and inflationary pressures that could impact IT spending.


    IT spending will remain strong, even as many countries are projected to have near-flat gross domestic product growth and high inflation in 2023. Prioritization will be critical as CIOs look to optimize spend while using digital technology to transform the company’s value proposition, revenue and client interactions.

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