The findings indicate that as revenues and technology budgets grow over the next 12 months, many businesses will deploy cutting-edge technologies to replace outdated infrastructures and to address growing security concerns. Of those surveyed, in 2020, 44 percent of businesses plan to increase their IT budgets, compared to 38 percent in 2019. Organizations that expect IT budget growth next year anticipate an 18 percent increase, on average. Only 8 percent of businesses expect IT budgets to decline in 2020.
Among the businesses increasing IT spend in 2020, aging IT infrastructure and growing security concerns are the biggest drivers of budget growth, but factors vary by company size and location. For example, 25 percent of enterprises surveyed reported that a recent security incident is driving them to increase their 2020 IT budget, compared to only 4 percent of small businesses. Additionally, compared to those in North America, European businesses are more likely to increase IT spending in 2020 due to corporate tax cuts. Fifteen percent of European businesses said they’re investing in IT and expanding budgets due to corporate tax cuts, compared to only 4 percent in North America.
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