Banking, investment services to increase IT spending in 2023

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Banking, investment services to increase IT spending in 2023
Banking, investment services to increase IT spending in 2023

With an increase of 13.5% in 2023, IT spending on software will see the largest growth 

A total of $652.1 billion of IT spending in 2023 is forecast by banking and investment services across the globe, an increase of 8.1% from 2022, according to Gartner. With an increase of 13.5% in 2023, IT spending on software will see the largest growth.

“Current economic headwinds have changed the context for technology investments in banking and investment services this year,” said Debbie Buckland, Director Analyst at Gartner. “Rather than cutting IT budgets, organisations are spending more on the types of technologies that generate significantly higher business outcomes. Spending on software, for example, is shifting away from building it in-house in favour of buying solutions that generate value from investments more rapidly.”

On cybersecurity, data and analytics, integration technologies, and cloud, banking, and investment services, CIOs will spend the largest portion of new or additional funding in 2023, according to the Gartner 2023 CIO and Technology executive survey.

While reducing IT spending in their own data centres, more than half of them plan to increase investments in the cloud. This is reflected by slower data centre system spending growth, from 13.2% in 2022 to 5.7% in 2023. To meet evolving customer and market expectations, banks are disengaging from tangible assets and capital expenditure (capex) in favour of adopting services and operating expenditure (opex).

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