Tech budgets expected to grow, with bump in software spending

CIOs' budgets are expected to see a bump, with spending increasing on process automation, artificial intelligence and cybersecurity, according to a June 25 Forrester report.

Five things to know:

  1. Tech market outlooks took a positive turn in December, with tech budgets projected to grow 7.4 percent in 2021 and 6.7 percent in 2022. 

  2. Andrew Bartels, the vice president and senior analyst of Forrester, said the upward spike reflects the economic stimulus package that President Joe Biden signed into law in March, according to The Wall Street Journal.

  3. Companies' budgets on CIO staff spending are projected to reach $470 billion in 2022.

  4. Communications equipment spending is projected to be the fastest-growing spending category, growing 13.2 percent in 2021.

  5. Spending on software is forecasted to reach $482 billion in 2022 and is the second-fastest category of growth. It is expected to grow 10.4 percent in 2021. In software, process automation is expected to grow 33 percent, with AI expected to grow 13 percent and cybersecurity software at 11 percent.

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