A Slowdown is Expected for Tech Spending, Except in Cybersec

Businesses around the world are likely to scale back technology spending in 2023, according to a Citibank survey of Chief Information Officers (CIOs).

However, spending on cybersecurity is expected to keep growing at a similar rate as businesses grow aware of the potential damage of cybercrime.

The rising cases of ransomware attacks and stricter government regulations to comply with data security are pushing organizations to focus on securing data. Companies in the healthcare and financial services industries are especially concerned about cyber criminals.

“Cybersecurity remains by far a top priority for CIOs,” the Citibank report concludes.

The main reason behind the likely decline in technology spending is that many companies expect the global economy to slide into recession in the second half of the year.

“We’re also seeing organizations in every industry and geography exercise caution as some parts of the world are in a recession and other parts are anticipating one,” wrote Microsoft CEO Satya Nadella in a blogpost recently.

Those who invested heavily during the pandemic are now trying to “optimize their digital spend to do more with less,” Nadella added.

In other words, companies seem to be more focused on optimizing existing IT infrastructure than overhauling it.

Additionally, Chief Financial Officers (CFOs) are gaining a greater say in technology spending and are questioning any attribution to technology solutions.