Businesses across the globe will spend a total of $3.7 trillion on IT hardware, software and services in 2013, according to new data from Gartner.
This is up 4.2 percent on 2012, when spending rose by just 1.2 percent, and the trend for growth is set to continue into 2014 with sales of $3.8trn expected.
The growth through 2013 will come from several key areas including enterprise software, projected to almost double from 3.3 percent in 2012 to 6.4 percent, while device sales of PCs, tablets, phones and printers, will rise 6.3 percent, up from a 2.9 percent increase in 2012.
The firm said part of this growth was due to an expected growth in the value of foreign currencies against the dollar. But the increase is also indicative of returning business confidence, with IT budgets rising after years of insecurity.
"It's not time to get the bunting out quite yet but I think the uncertainties that have dogged the market are passing, particularly with the US elections over and the Eurozone seeming to be beyond any immediate dangers," Richard Gordon, managing vice president at Gartner, told V3.
"We're not going to see firms now splurging cash but we will see more investment happening particularly in some key areas like enterprise software."
Software sales are projected to increase in areas such as storage management and customer relationship management (CRM) set for 2013 growth and data integration and big data tools predicted for growth in 2014.
Gordon said much of the increase in software sales stems from firms' need to drive efficiencies without making huge upfront investments.
"Companies are looking at IT as part of the wider business strategy now, so if they want a better understanding of the customer base they can use CRM tools and so forth," he said.
"Access to technology is not limited by a willingness to spend anymore as tools can be accessed via the cloud cheaply so you can reduce capital risk and move to a more operational expense model."
While the overall trend for 2013 is positive, there are some long-term slowdowns expected by Gartner, notably in the hardware as spending patterns shift from PCs to lower cost tablets.
"We're not being less bullish because of demand but we are seeing a faster shift to lower cost devices such tablets away from PCs so the average price is being reduced and taking value out of the market," Gordon said.
Dan Worth is the news editor for V3 having first joined the site as a reporter in November 2009. He specialises in a raft of areas including fixed and mobile telecoms, data protection, social media and government IT. Before joining V3 Dan covered communications technology, data handling and resilience in the emergency services sector on the BAPCO Journal.