Australian IT spending to grow 7.8% in 2024

By Dylan Bushell-Embling
Thursday, 14 September, 2023

Australian IT spending to grow 7.8% in 2024

IT spending in Australia is on track to grow 7.8% in 2024 to reach over $133 billion, according to Gartner’s latest forecasts.

The research firm expects spending on software to see the largest growth with an increase of 12.8% to $38.7 billion, but this will be down from an expected 13.2% increase in 2023.

Meanwhile, IT services is expected to remain the largest category of spending, increasing 8.2% in 2024 to $48.84 billion. Spending on the category is expected to increase by 7.1% in 2023.

Spending on data centre systems is projected to increase by 5.1% to $4.27 million, bouncing back from a 6.4% decline in spending in 2023. Device spend is likewise expected to grow 4.7% to $15.94 billion after a 1.3% decrease in 2023.

Finally, spending on communications services is on track to increase by 2.5% in 2024 to $25.59 billion, Gartner said.

Gartner Distinguished VP Analyst Andy Roswell-Jones said the projected overall increase in spending during the year suggests that more money will be available to IT departments.

“Despite this, most Australian CIOs are focused on optimising infrastructure and operational costs and efficiencies, by further investing in cloud and digital enablement to deliver higher business outcomes and revenue,” he said.

Given the highly publicised data breaches we’ve seen in Australia over the past 12 months, it’s no surprise that cybersecurity is at the top of the spending list again. Every organisation’s risk and audit committee is worrying about a potential cybersecurity fallout and various industry regulators are actively pushing for improved capabilities.”

Other spending trends for 2024 will include increased investment in generative AI technologies, as well as ongoing investments in digital enablement to improve cost and operational efficiencies or augment traditional product sets with digital capabilities, Roswell-Jones added.

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