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COVID-19: Effect on Information Technology Resources

by Actz Xyz Actz

IT Spending is Falling Significantly

The Covid19 crisis is also affecting information technology. The market research institute IDC has drastically lowered its expenditure forecast for this year.

The current crisis is driving down technology and corporate investment spending, according to the latest figures from the market research institute IDC. According to this, the IT spending forecast for 2020 will decrease by 5.1 percent to $ 22.25 trillion. However, total IT infrastructure spending is still expected to increase by nearly 4 percent to $ 237 billion, largely due to the demand for cloud services.

According to IDC, the largest spending cuts will be made on devices such as PCs and smartphones, at minus 12.4 percent. The PC market was already expected to shrink this year. Telecommunications spending will decrease by almost 1 percent, which is relatively stable compared to other types of technology investments.

IT services spending will also decrease by 2.9 percent, mainly due to delays in large projects. However, IDC believes that revenue from services related to the management, support, and operation of the technology, as well as spending on digital transformation projects, will be largely protected.

“A major economic recession, particularly in the second quarter, will inevitably result in large short-term cuts in IT spending for the businesses and industries that are directly affected,” said Stephen Minton, IDC Analyst Customer Insights and Analysis. “Some companies will cut their capital expenditure and others will either delay new projects or try to save costs in some other way. However, there are also signs that some parts of the IT market may be relatively more resilient to this economic downturn than in previous recessions because technology is now an integral part of the business. ”

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About Actz Xyz Junior   Actz

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Joined APSense since, May 9th, 2020, From ohio, United States.

Created on May 12th 2020 07:00. Viewed 171 times.

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