Omdia Finds Half of Enterprises Are Advanced in Shift to Sustainable IT

Fifty percent of enterprises believe they are well advanced in the shift to sustainable IT according to Omdia’s ninth IT Enterprise Insights Report.

Sustainable IT, becoming more critical in 2022, as well as over the coming decade, was identified as a key investment area by climate-conscious senior IT executives interviewed for Omdia’s annual survey.

However, preempting business disruption was deemed the highest priority item on the business planning agenda as the world returns to some semblance of normalcy post-pandemic. The report found that 59 percent of organizations expect to increase technology spending in 2022.

The pandemic accelerated digital initiatives exponentially. IT budget growth plans by industry align with revenue outlook expectations in each sector, but in most vertical sectors, the proportion planning IT spend growth is higher than those envisioning revenue growth. The research shows strong IT growth plans (over 6 percent growth) are especially pervasive in health care (33 percent), utilities (31 percent), life sciences (31 percent), and manufacturing (28 percent). The financial markets industry also has seen a strong change in proportion of institutions planning strong IT spend growth (8 percent in 2021 to 24 percent in 2022) as has retail (11 percent in 2021 to 24 percent in 2022) and utilities (13 percent to 31 percent).

IT budget growth plans for 2022 are evident globally, with more than 55 percent of enterprises expecting growth across all regions. South Asia is the strongest growing region, led by India, where one-third of enterprises expects strong IT spend.

Key takeaways from the report include:

  • IT Sustainability – Sustainable IT is a top IT priority for 12 percent of enterprises; however, 50 percent of enterprises believe they are well advanced in the shift to create sustainable IT. Industries rating themselves most advanced in the move to IT Sustainability include telecommunications, retail and media. Sustainable IT will become more critical in 2022, as well as over the coming decade.
  • IT Priorities – Security and digital are the top two IT priorities. A key shift for 2022 is building a modern workplace – supporting mobility, remote/hybrid working models and remote collaboration – which came in third place.
  • Revenue Impact – The outlook for enterprise IT vendors continues to look positive in 2022. Industries anticipating the most beneficial revenue impact from the pandemic include health care, life sciences/pharmaceuticals, and telecommunications.

The pandemic has accelerated digital transformation programs for most enterprises, with increased importance of digital for client and employee interaction driving greater executive support for digital initiatives. Most enterprises are looking to increase IT expenditures in 2022, however, expectations in terms of experience and adaptability have shifted during the pandemic, and enterprises need to rapidly deliver continued innovation for both employees and customers over 2022.

IT budget growth expectations are generally stronger for 2022 than seen in 2021, with 59 percent of enterprises expecting IT spending to grow in 2022 compared to 43 percent that have seen growth in 2021.

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