More than two-thirds of businesses planned to increase their IT spending during 2022, putting special emphasis on cybersecurity, cloud applications and artificial intelligence, according to a study conducted by Enterprise Strategy Group.
Much of these budget dollars are being spent on solutions that will fill help address challenges with IT skills, especially in terms of filling cybersecurity roles.In #HRTech spending, businesses are focusing on cybersecurity, cloud applications and artificial intelligence. #HR Click To Tweet
“The technology areas that top the list for expected spending increases are also ones in which many organizations face a problematic skills shortage,” said ESG analyst Jon Oltsik. “[The] demand for skilled workers in those areas continues to outpace the available supply.”
In addition, businesses are investing in HR technology that can help them improve the results of their recruiting efforts, reduce attrition and generally boost their efforts in HCM.
“Business leaders in all industries are beginning to realize the value of investing in their workforce when facing hiring challenges, mass resignations and general uncertainty,” Evelyn McMullen, an analyst at Nucleus Research, told SHRM. Nucleus, she said, expects “all eyes to remain” on HCM technology vendors in areas including talent, core HR and workforce management.
Talent acquisition processes, analytics, on-demand pay and upskilling are all trends to watch, she said.
A Rising Tide…
Meanwhile, Fortune Business Insights said it expects global HR technology spending to rise from $24 billion in 2021 to $35 billion by 2028, an increase of nearly 6% per year. HCM, talent management, workforce management and payroll management are all areas the researcher expects to expand. HR will focus its spending on solutions and platforms with AI, built-in security and cloud capabilities. Among other things, AI is being leveraged to forecast future skills gaps, FBS said.
FBS expects spending on talent management products to grow over the next decade as employers put more emphasis on hiring, performance and career development, and succession management.
Geographically, spending in North America will rise from less than $12 billion a year today to more than $17 billion by 2028, ESG said. The reseearcher expects banking and financial services, IT, telecommunications, manufacturing, retail and healthcare to be the most active in terms of spending.