1、1|10 IT&Business Services M&A Overview 1H 2023Demand for IT grows as enterprises respond to economic turmoilCompanies are using digital technology primarily toreshape their revenue stream,adding new productsand services,changing the cash flow of existingproducts and services,as well as changing the

2、valueproposition of existing products and services.Thistrend has fed the shift from buying technology tobuilding,composing and assembling technology tomeet specific business drivers.This shift is foundationalto the growth of cloud over on-premises for new ITspending.In particular,government spending

3、 on IT is forecast togrow rapidly,totalling$588.9 billion in 2023,anincrease of 6.8%from 2022.Indeed,governmentorganisations are continuing to modernise legacy ITand invest in initiatives that improve access to digitalservicesasconstituentsincreasinglydemandexperiences that are equivalent to online

4、customerinteractions in the private sector.Worldwide IT spending is projected to total$4.6trillion in 2023,an increase of 5.1%from 2022,according to the latest forecast by Gartner.Demandfor IT in 2023 is expected to be strong as enterprisespushforwardwithdigitalbusinessinitiativesinresponse to econo

5、mic turmoil.Indeed,enterprise IT spending is showing no signs ofdecreasing as CEOs and CFOs,rather than cutting ITbudgets,are increasing spending on digital businessinitiatives.Economicturbulencewillchangethecontextfortechnologyinvestments,increasingspending in some areas and accelerating declines i

6、nothers,but it is not projected to materially impact theoverall level of enterprise technology spending.In fact,a July 2022 Gartner survey of more than 200 CFOsfound that 69%plan to increase their spend on digitaltechnologies,while the2023GartnerCIO andTechnology Executive Survey found that CIOs are