Worldwide IT spends to increase from $3.8 trillion in 2019 to $3.9 trillion in 2020, according to the latest report from Gartner. Moreover, IT spending is projected to cross $4 trillion in 2021. The research firm believes that software will be the primary driver for spending over 2020, recording an increase of 10.5%. IT services and communications services topped the highest spending in 2019, as well as the highest projected spending in 2020.

US Tech Spending Slows down, but Cloud Adoption Will Increase

The adoption of SaaS is driving enterprise software growth as more companies opt for pay-as-you-go cloud-based computing services, the report found. After IT, businesses spend the most on data center systems and devices that are expected to increase by 0.8% and 1.9% in 2020, respectively.