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IT Spending Forecasts Take a Hit as Coronavirus Slams Global Markets

By The Wall Street Journal

March 24, 2020

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International Data Corp. (IDC) analysts predict companies will scale back information-technology (IT) investments as the coronavirus pandemic roils global markets, negating any short-term gains from corporate spending sprees on software, mobile devices, and other tools to accommodate a spike in remote work.

IDC speculated annual IT spending worldwide would decline from more than 4% to 1% this year, to about $2.3 trillion.

IDC's Stephen Minton expects most businesses scrambling to deploy emergency remote-work capabilities will move funds from other IT areas rather than boost net spending.

Meanwhile, Gartner's John-David Lovelock anticipates yearly software and hardware spending related to workplace communications and collaboration technology rising from a projected 2% to 2.5%, but the firm's revised IT investment outlook will indicate "softer" spending growth than an initial 3.7% forecast.

Lovelock added that cloud computing makes a sudden need for additional computer capacity and remote-work software less difficult to manage.

From The Wall Street Journal
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