IT spend in 2020 is 5 Percent higher than 2018
IT spending as a percentage of revenue ranges widely depending on industry. Data from Deloitte shows the overall average for all industries in 2018 was 3.28%, with banking and securities at just over 7% and less than 2% in construction and manufacturing.
If yours is higher, don’t worry, even these averages vary wildly. Even within the same industry investment levels can vary significantly from sector to sector. The 75th percentile across all industries was as high as 9% and the 25th percentile was less than half the overall average.
But 2020 seems to show a stark difference. A study from Flexera says that 2020 IT spending as a percentage of revenue was 8.2%, nearly 5% higher than 2 years ago. That would be a huge increase under normal circumstances. Additionally, 46% expect a “slight increase” and another 10% expect a “significant increase” in IT spend next year.
That study also shows Retail imaking the biggest changes: with 56% expecting a “slight increase” and another 19% expecting a “significant increase” in IT spending.
In any case, it's clear many companies have invested, and continue to invest in both fundamental and innovative technologies. Working to integrate back-end infrastructure with front-end digital technologies that will help them better engage their customers.
Many clients work with Cloud 9 for that very reason. Sound principles and expertise in digital transformation are the key to success.
About Cloud 9
Cloud 9 Advisers helps business leaders and understaffed IT teams that need a strategic partner, not just another vendor. We help decision-makers buy great technology. We work with you to rationalize and reduce technology spending without sacrificing the technology itself and employ sound digital transformation principles and strategies.
We do not sell solutions, we help you buy the right solutions. We are not a vendor, we help you find the right vendors. We diagnose problems, prescribe solutions, and facilitate decisions.
We are impartial, unbiased, and vendor-neutral technology practitioners with expertise in four critical segments: Cybersecurity, Communications, Connectivity, and Cloud. Our proprietary software contains decades of data and analytics on all of the 250+ vendors in our Supplier Portfolio. We’ll help you quickly identify, research, evaluate, and compare appropriate solutions and vendors; eliminating months of labor trying to do it on your own. We’ll help you make confident decisions quickly.
To learn more contact us today and book an appointment.