Factors driving IT spend
More than half (53 per cent) of the 1,000 businesses surveyed say they expect their IT budget to grow in 2022, with 35 per cent anticipating this will remain the same as 2021. However, small businesses are less likely to do so, with 45 per cent saying budgets will grow and 39 per cent expecting no change.
The most prominent motivation for small firms is a need to upgrade outdated IT infrastructure, put forward by 42 per cent. A third (33 per cent) of small firms are motivated by security concerns, while 32 per cent are putting an increased priority on IT projects in the wake of the pandemic. Some 30 per cent say they are planning to increase spend as a result of higher business revenue, while 29 per cent attribute this to inflation.
Drilling down into the triggers for upgrading IT, the most common reason for small firms was existing equipment reaching the end of life (59 per cent), reaching a point in an upgrade or refresh cycle (54 per cent) and the need to be able to accommodate additional growth (52 per cent).