Global IT spending on banking, investment services to reach $652 billion in 2023: Gartner

“Current economic headwinds have changed the context for technology investments in banking and investment services this year,” said Debbie Buckland, director analyst, Gartner. “Rather than cutting IT budgets, organizations 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 favor of buying solutions that generate value from investments more rapidly.”

Driven by the increased use of consulting services and infrastructure as a service (IaaS), IT services will be the largest spending category, forecast to reach almost $270 billion in 2023.

This is an increase of 9.3% over 2022, reflecting the increasingly important role IT service providers play in helping banking and investment services organisations navigate emerging opportunities and challenges.

“Economic uncertainty is leading organisations to break down long-term contracts into multiple shorter projects,” said Buckland. “They’re also reluctant to sign new contracts, commit to long-term initiatives or take on new technology partners, which is driving an increase in the use of IT consulting services.”

According to the Gartner 2023 CIO and Technology Executive Survey, banking and investment services CIOs will spend the largest amount of new or additional funding in 2023 on cybersecurity, data and analytics, integration technologies and cloud.

Discover the stories of your interest

More than half plan to increase investments in cloud, while reducing IT spending in their own data centres. This is reflected by slower growth in data centre systems spending from 13.2% in 2022 to 5.7% in 2023.