This year, the global IT industry has seen numerous challenges, including a noticeable slowdown in IT spending. Many businesses have already felt the impact of high inflation rates, economic uncertainties and market fluctuations. In this article, we want to take a look at the reasons behind the IT spending slowdown and explore how ITSM can help deal with the challenges that arise from it.
Undoubtedly, the number 1 reason for the slowdown in IT spending is the global economic situation. At this point, the tensions and disruptions happening in the world do not need an additional explanation. The general uncertainty of what’s coming next has forced many businesses to turn to cautious spending patterns over the course of the past year.
Despite the not-so-positive economic situation, the IT landscape has been definitely reaching new heights at an incredible speed. Especially with the topic of Artificial Intelligence and new generative AI models, such as ChatGPT, taking over the public’s attention. As we have already discussed, leveraging AI technology holds immense potential for companies. However, aligning existing IT infrastructure and processes with the new technological demands is a time-consuming process, which also leads to delays in IT spending.
Thirdly, in an increasingly competitive market, businesses are prioritizing cost optimization measures. IT departments have been long under pressure to demonstrate the value and return on investment for every IT expenditure, resulting in a more cautious approach towards IT spending.
The slowdown in IT spending translates into 3 main challenges that companies face:
So, how does IT Service Management come into play? ITSM provides a systematic framework that helps businesses to boost operational efficiency, align IT with business objectives, and optimize IT service delivery.Organizations can successfully deal with the issues brought on by the IT spending slowdown by implementing an ITSM solution. In practice, this means the following:
The slowdown in global IT spending in 2023 brings a whole spectrum of challenges for organizations. However, businesses that did decide to embark on the ITSM journey have been managing to counteract the challenges and even leverage the opportunities presented by changing market dynamics to their own benefit. Now, this may sound unrealistic, but according to Gartner, spending on software is expected to increase over 13 percent year over year in 2024 compared with this year, surpassing over $1 trillion in spending.
If you are still looking for more insights on how to navigate the global economic turbulence, we invite you to attend our free annual event, Digitalize and Automate 2023, where industry experts will share more strategies on how to properly equip yourself for this year and beyond.
Join us on September 19!
Part of the text has been written with the help of Chat GPT.
Tatiana is a Content Marketing Specialist at Efecte. Driven by her passion for marketing, she provides different types of content that reflect Efecte as a European market leader, an innovator in their space, and a bright place to work. Her professional goals include engaging the readers and shaping a strong image of Efecte in people’s minds.
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