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Digitization push: demand picks up

IT service providers are very optimistic about the coming years due to the digitization push. User companies are increasing their digital and IT budgets in 2021 and 2022.
E-3 Magazine
November 15, 2021
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This text has been automatically translated from German to English.

69% of large SMEs and corporations have given digitalization a higher priority and focus since the outbreak of the coronavirus crisis. The focus is primarily on the digital workplace and the development and expansion of digital business models.

Investment priorities for 2021 and 2022 are IT modernization, software development, cloud transformation, IT security, data analytics and solutions for customer experience management.

A clear majority of companies will spend more money on digital and IT projects in 2022 and also intensify their collaboration with IT service providers. The forecasts of IT service providers for the current year 2021 and 2022 are correspondingly optimistic. Accordingly, 98% of the IT service providers surveyed by Lünendonk expect turnover to increase in 2021, while two percent expect business to remain constant. These are the results of the new Lünendonk study 2021, "The market for IT services in Germany".

Mario Zillmann, author of the study and partner at Lünendonk & Hossenfelder, says: "In 2020, many digitalization and IT projects were postponed and now have to be made up for. In addition, the coronavirus crisis was also the starting signal for a series of disruptive changes such as data-based business models."

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