The technology industry enjoys robust demand as a result of rising global IT service spending and digital transformation. However, supply chain issues, layoffs, and an expected economic slowdown are keeping the industry constrained.
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According to Gartner, global government IT spending is expected to reach $589.80 billion in 2023, a 7.6% rise from 2022.
Moreover, according to the Business Research Company’s IT Services Global Market Report 2023, the global IT services market is predicted to increase at an 8% CAGR to $4910.4 billion by 2027. Rising e-commerce penetration, smart city development, the creation of start-ups, and the increasing usage of IoT is driving the IT services market ahead.
Investors’ interest in tech stocks is evident from the iShares U.S. Technology ETF (IYW) 21.9% returns over the past three months and 31.3 % over the past six months.
Despite this year’s improvements, the tech industry will likely struggle with supply chain and layoffs. According to a report from Layoffs.fyi, the total number of layoffs for 2023 based on full months to date is 168,243, with the overall number of tech layoffs this year currently exceeding the total number of tech layoffs in 2022.
Furthermore, a projected economic recession is a major concern, and…
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