Forrester Predicts 4% Growth in Australian Tech Spending for 2024
Forrester has projected a modest 4% increase in technology spending in Australia for 2024, despite challenges such as high inflation, sluggish economic growth, and rising interest rates in the region. The forecast indicates that business and technology leaders in both Australia and New Zealand are focusing on improving customer and business partner experiences during this period.
Customer experience (CX) has emerged as a key focus area, with companies in Australia and New Zealand working to enhance customer interactions and fulfill brand promises through new technologies. These efforts aim to not only engage customers but also enrich physical experiences. Additionally, resources are being reallocated to align brand initiatives with environmental, social, and governance (ESG) reporting, partly driven by regulations like the Corporate Sustainability Reporting Directive. This is seen as crucial by 34% of respondents in the region.
In the field of information technology (IT), priorities differ between the two countries. In New Zealand, 32% of respondents have identified enhancing stakeholder experiences as the top IT objective, while 25% emphasize the importance of increasing experimentation and improving the resilience and reliability of IT infrastructures. Meanwhile, Australian respondents frequently cite the need to increase IT delivery speeds, with upgrading infrastructure being a key focus for their IT organizations.
Despite economic uncertainties, a significant majority of respondents in both countries expect increased spending on artificial intelligence (AI) and other emerging technologies in the coming year. Specifically, 91% of respondents in Australia and 81% in New Zealand anticipate more investment in these areas.
New Zealand’s focus remains on solutions that support its agriculture and food-related exports, while Australia prioritizes technologies that empower hybrid work environments, with a particular emphasis on AI tools and better utilization of data and analytics technologies.
These insights provide a snapshot of business and IT priorities in Australia and New Zealand as both nations navigate economic challenges. The objectives outlined in this forecast are expected to shape the strategic directions of organizations in the region for the year ahead.
Forrester Research is a global market research and advisory firm that helps organizations make informed decisions in technology, customer experience, and business strategy. Through comprehensive research, data-driven insights, and expert guidance, Forrester empowers companies to navigate the complexities of digital transformation and stay ahead in competitive markets. Its thought leadership and advisory services are trusted by businesses worldwide to drive innovation and achieve measurable success.
