IT budget: trends to consider in 2023 according to Gartner

With the start of September comes the preparation of your CIObudget. Take stock of budgets that have been renewed, identify needs, review requests and evaluate the costs and benefits of projects. This article presents the elements to consider when preparing your 2023 IT budget, according to GARTNER's analysis.

IT investment: CIO adjusts purchasing and strategy in response to the economic climate

Inflation and exchange rate volatility are holding back global IT spending, but CIO continues to invest and prioritize purchases. Gartner adjusts its IT spending growth forecasts. On average, Gartner expects global IT investment to rise by 3% in 2022.

In the context of the Russia/Ukraine conflict, here's what technology suppliers and buyers can expect:

Companies need to identify weak links in their value chain and develop agile sourcing strategies.

In addition, rising prices and supply difficulties exacerbated by the Russia-Ukraine conflictare accelerating the transition to cloud services. Spending in this area is expected to increase by over 22% year-on-year.

Despite inflation and exchange rate volatility, IT departments continue to invest and prioritize IT as a service.

"The CIO are using more IT services to address the shortage of skilled IT staff. Tasks requiring less specialized skills tend to be outsourced to managed services companies to lighten staff time. While critical strategic work, which requires high-end skills unavailable to many companies, will increasingly be handled by external consultants," points out John-David Lovelock, Research Vice President at Gartner.

What technological investments should be included in the 2023 IT budget?

The Gartner survey of CIOs (CIO), questioned more than 2,000 IT managers on planned technology investments. In the Top 5 of growing technology investments we find :

  1. cyberspace and information security,
  2. cloud computing platforms,
  3. API integration technologies,
  4. modernization of existing applications,
  5. artificial intelligence.
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Gartner's survey on the evolution of technology investments

Overall, the market is expected to be more dynamic in 2023 (+6.1%, to $4.8 bn). The 2022 Future Trends Survey revealed that global IT budgets will increase by an average of 3.6%. French companies surveyed expect an average increase of 2.7%. The Gartner survey found that among the biggest spending increases, some will be devoted to technologies such as :

Budget CIO 2022 gartner survey

1. Cyberspace and information security

78% of CIO in France intend to invest more in cybersecurity, one of the highest rates in the world.

Hybrid working methods and digital business processes in the cloud have brought new risks to the fore. At the same time, sophisticated ransomware, attacks on the digital supply chain and well-presented vulnerabilities have highlighted technology and skills deficiencies. "These challenges don't present themselves independently of each other; they have a cumulative impact," explains Peter Firstbrook, analyst vice president at Gartner. "To address these risks, CISOs must shift from the role of technologist charged with preventing breaches to that of business strategist called upon to manage the risks inherent in cybercrime.".

To prevent cyber risks, Gartner recommends that companies implement a cybersecurity mesh, i.e. a distributed architectural approach that defines individual security perimeters around each access point of an IT asset, rather than a single "fortress" type perimeter. The aim is to reinforce the security of all access points, thus preventing hackers from exploiting a security flaw to gain access to the entire network. 

According to Gartner, adopting a meshed cybersecurity architecture could reduce the cost of cyber incidents by around 90% by 2024. 

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2. Cloud computing platforms

Cloud computing will continue to see major advances in the coming months. The move to the hybrid cloud offers many advantages for businesses. On the one hand, it enables data to be segmented in such a way that data accessed frequently by customers is stored on public servers ( AWS or Azure servers). More sensitive data, on the other hand, will be stored on private servers with a higher level of surveillance.


3. API integration technologies

Companies want more than just basic solutions: 93% believe that with the widespread use of APIs, companies now need more advanced API solutions to reap the full benefits they offer. Advanced API management solutions add capabilities for attracting and engaging developer communities and partner ecosystems, monetizing APIs, and monitoring the full path of API consumption, from back-end applications to the edge. To address these challenges, integration systems are becoming more prevalent in enterprises. Enterprises are most likely to use some form of hybrid integration system, both on-premise and in the cloud.


4. Modernization of existing applications

It's not just a question of replacing existing software, but also of scaling, automating and making tools available.

Application modernization will be linked to the move to PaaS (cloud-based application development platform). We can expect to see a switch to a shared architecture, the reinstallation of applications with an "API first" approach, and the containerization of databases to support scaling.

5. Artificial intelligence

Is artificial intelligence really a technological investment you should include in your 2023 IT budget?

Gartner notes that AI "is among the most disruptive technologies of the next 10 years due to extreme computing power, almost unlimited amounts of data and unprecedented advances in deep neural networks. These developments will enable companies with AI technologies to leverage data to adapt to new situations and solve problems that no one has ever faced before."

Artificial intelligence is one of the major areas of investment in technology.

However, most current investment in artificial intelligence is being made by the cash-rich in-house R&D divisions of digital natives such as Amazon, Baidu and Google. What happens outside this circle is still under discussion or in the experimental phase. A survey by ServiceNow of 500 CIO from 25 industries showed that :

Gartner recommends that CIO build or acquire the tools needed to ensure data quality, and train their teams to use them correctly.

IT budgeting: How can a PPM tool help CIO ?

IT budgeting requires us to reflect both on existing activities and on the new IT projects to be implemented. This should enable General Management, the IT Services Department and the Finance and Administration Department to work together to build a sustainable proposal for the IT function. It must guarantee, in line with strategic orientations, a real contribution to the business, take account of customer expectations, control costs and processes, and not least anticipate the future. CIO must manage and control its budget so as to play an active role in maintaining or creating value for the company. The IT budget " infuses " the entire organization.

PPM - project portfolio management - software helps CIO to monitor and analyze project budgets. PPM software enables you to :

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