Software and tech consulting and outsourcing services will see the fastest growth in 2022, outpacing pre-pandemic levels, according to Forrester’s latest outlook of the global tech market. While North America and Asia will recover fastest from the pandemic and see the fastest regional tech spend growth, regions will also rebalance their technology portfolios to become more autonomous and self-reliant.
Overall, the global tech market will see robust 6% growth in 2022 and 2023, significantly faster than pre-pandemic levels. Per Forrester’s Global Tech Market Outlook For 2022 To 2023:
- Software will grow 10.5%. Cloud software — both multitenant software-as-as-service and single-instance hosted subscription — continues to expand its share of the software market. Public cloud spending is expected to more than double by 2025, with only a fraction of noncritical workloads on the cloud today.
- IT services will grow 6.8%, driven both by digital and cloud investment and the momentum of 2021. Data privacy, software security, and data management services create consulting opportunities. Public and private cloud infrastructure services and security managed services spur tech outsourcing growth. Traditional outsourcing categories for hosting, infrastructure outsourcing, and application management grow more slowly.
- North America tech spend will grow 7% in 2022. US real GDP will see strong 3.6% growth in 2022. The industries that represent almost three-quarters of US tech spending — financial services, professional services, government, media and information, telecommunications and data processing, and insurance — are all seeing good growth in revenues. Yet high interest rates in the US could be a headwind for 2022, potentially reducing investor interest in tech stocks. Additionally, in 2022, Asia Pacific and Europe tech spend is expected to grow 6.1% and 5%, respectively.
- In 2022, robust software, cloud and IT services, and green energy growth refocuses tech investment. Vendors worldwide will expand their products and services outside their traditional markets to exploit the as-a-service and software revolution, as well as mergers and acquisitions; use technology to drive clean energy; and expand in-house development tools.
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