Business Investment In Computer Programs Will Continue To Grow

Globally, companies will continue to invest in software in 2022 and 2023 despite many uncertainties. Spending on these tools is expected to grow about twice as fast as spending on other areas of computing. They are supported by the deployment of enterprise solutions and cloud technology.

Forrester has released a new study on software spending around the world. The research firm predicts that between 2021-2023, they will continue to increase, with an average rate of 10.3%. This increase is expected despite the lack of manpower and the geopolitical risks weighing on the IT sector.

The American company indicates that the security programs, which it classifies among the infrastructure solutions, should experience the clearest development. A consequence of geopolitical issues such as the conflict between Russia and Ukraine as well as waves of cyberattacks. These instruments are thus promised an average annual growth rate (CAGR) of 15.4% in 2022 and 2023.

The digitization of organizations is driving the rise in ERP spending

Another sub-division of infrastructure programs, technology management applications should maintain a growth momentum of 13.1%. Companies looking to renew their technology stacks with containers and complex serverless architectures . Database management software is driven by demand for instant analytics. As a result, the revenue they generate for publishers is expected to grow by 12.8%.

More generally, an increase of 12.6% should be recorded in 2022 and 2023 on spending on infrastructure software. According to Forrester, these investments would amount to more than 400 billion dollars by next year. They are pulled up by:

• Spending on database management programs and Devops;
• The transformation of basic legacy data technologies.

Purchases of tailor-made solutions for different business activities should also increase. A rise of 11.9% is expected in 2022 on sales of collaborative tools and content such as:

• Slack
• Zoom
• Microsoft Teams.

The American firm also anticipates this year a 10.4% increase in expenditure on integrated management software packages. Digitization efforts, which will create jobs for freelancers in IT wage portage, are stimulating their growth.

Enterprise software is growing thanks to cloud computing.

The application software market will show a CAGR of 11.4% in 2022 and next year. It will thus also be above 400 billion dollars. The market for customer relationship management (CRM) applications will benefit from an increase of +11.9% this year. For indication, it was worth in 2021 64 billion dollars in 2021.

Forrester also announces that investments in enterprise software should soar by 12% this year. This increase is driven by spending on cloud tools, themselves supported by the advance in the digitization of organizations. A phenomenon that has accelerated since the health crisis due to the coronavirus. The Massachusetts-based company decrypts:

Investing in the cloud to modernize legacy software is creating strong momentum for front- and back-office application sales.

Its report is based on a survey of 657 computer program design companies. He predicts that in the global market for these instruments, the current delicate macroeconomic context will only have an impact:

• Either medium scale
• Be weak.

This projection also holds for the other negative impact factors. This market would be protected by the supposed strength of its fundamentals, says Forrester. About one out of two of the suppliers surveyed predicts an evolution of their revenues oscillating between 10-20% on average . The largest of these companies should experience substantial profits and turnover. However, the increase in the latter should be less rapid than in 2021.