Nigeria, the United States and other countries across the world spent $4.26 on information and technology in 2021.
The Association of Telecommunications Companies of Nigeria (ATCON) had revealed that globally, people now spent more on IT due to continuous innovation in information and communication technology.
Global spending on devices, including PCs, tablets, mobile phones and printers, as well as data center systems, enterprise software and communications services, rose to $4.26 trillion in 2021. The expenditure is expected to increase by 3.99 per cent to around $4.43 trillion in 2022.
IT consumers’ spending is expected to increase by $17 billion across the world before the end of 2022. Both IT services and communication services receive the largest amounts of investments, as these segments include a large array of different services and tools that remain cornerstones to different business functions.
For example, different unified communication services are vital to connecting employees virtually and therefore enhance business productivity. Spending on IT segments accelerates digital transformation. Generally, spending on the different IT segments is expected to grow, accelerating digital transformation across various industries.
Digital transformation encompasses the utilisation of artificial intelligence, process automation, and moving data to the cloud, for example. These processes are empowered by strategic spending on and deployment of different information technologies. Information technology services are used by organisations when creating, managing, and delivering information, as well as assisting with other business functions.
These services include consulting, software development and systems integration. There are also more “handson” tasks, such as hardware deployment and support, training and education, and hosted and outsourced IT services. Overall, IT services enable businesses to do their operations more efficiently. IT services form part of the broader IT market, encompassing services, devices, enterprise software, and data center systems. In 2019, global IT services spending surpassed one trillion dollars for the first time.
Spending slightly decreased in 2020 and gained momentum once again in 2021 due to a boost from the enterprise digitalisation process. In terms of regional IT services spending, North America and Asia accounted for 67 per cent of the global IT expenditure in 2021.
By contrast, IT services spending in Latin America has maintained a constant six per cent share since 2019. The broader market for IT services is made up of several segments, including outsourcing, managed services, security services, data management, and cloud computing. Cloud computing is a strongly growing segment, with enduser spending expected to reach nearly $500 billion in 2022.
Accordingly, enterprise spending on cloud infrastructure services amounted to $178 billion in 2021, registering an increase of 37 per cent compared to the previous year. Among the most prominent cloud providers are Amazon Web Services, Microsoft Azure, and Google Cloud, as well as Alibaba Cloud. The global managed services market is also off for a more than promising development in the upcoming years.
Simply put, it refers to the outsourcing of computing and IT-related processes, such as cloud computing or managed IT security. With managed service providers (MSPs) like IBM, Accenture, or Capgemini, the market is expected to exceed $300 billion in 2027. In general, the IT services industry is shaped by a plethora of technologies and infrastructure strategies that complement each other.
Among these are cloud strategies, the integration of technologies such as artificial intelligence (AI) and machine learning (ML) in business solutions, as well as a heightened demand for IT security approaches such as zero trust frameworks. Next to these developments, the IT industry is looking to fill knowledge gaps in the future. In 2022, approximately 25 per cent of recruiters in Europe were willing to remove the CV from their recruitment process.
Accordingly, companies also began lowering the importance of university degree requirements when applying for ITrelated jobs, to the advantage of IT certifications.
Meanwhile, it was said that Nigeria is not spending enough on IT while still lagging behind in the development of its own locally built IT. Based on the statistics by the Association of Telecommunications Companies of Nigeria (ATCON), the ICT sector spends a whopping $2.16 billion annually on tech-related foreign content.
The Head of Entrepreneurship and E-business, Federal University of Technology, Professor Olalekan Sakariyau, said government needed to spend more on developing local technology contents.
Sakariyau, who spoke on the topic: ‘The National Strategy for Promotion of Indigenous Contents in the Telecoms Sector’ at a forum recently, said there was the need to intensify the promotion of digital manufacturing, software development and research and development for digital innovation and entrepreneurship in the country.
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