The coronavirus pandemic and effects of the global economic recession are causing CIOs to prioritize spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation.
Tag: IT spending
Overall spending on devices including PCs and phones will be down significantly this year and is the main drag on total IT spending with the economic fallout likely to disrupt upgrade cycles for smartphones, which were expected to be boosted by the launch of premium 5G devices.
Hospitality and tourism-heavy industries like transportation and personal and consumer services are expected to be the most negatively impacted markets with IT spending expected to decline by 5% or more.
Worldwide IT spending is now expected to decline 2.7% in constant currency terms this year as Covid-19 impacts the global economy and forces many organizations around the world to respond with contingency planning and spending cuts in the short term.
Worldwide IT spending is projected to total $3.7 trillion in 2018, an increase of 6.2 percent from 2017, according to the latest forecast by analyst firm Gartner.