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The coronavirus pandemic will reduce IT spending worldwide

Experts surveyed by Enterprise Technology Research expect a change in expenses for information technology and a 4% decline. Meanwhile, spending on information security has even increased.

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The coronavirus pandemic could negatively affect IT spendings worldwide. According to the analytical firm Enterprise Technology Research, IT budgets are expected to fall by 3.5-4%. Moreover, expectations are getting worse in "online mode": if in mid-March only a slight decline was expected, then, as the situation in the United States radically changed (for the worse), pessimistic moods also grew.

According to ETR, about 37% of IT tool buyers don’t expect any major changes due to the pandemic.

21% of respondents expect a slight increase in IT spending; 9% of respondents expect that spending will increase by more than 10%. 28% of respondents, however, believe that spending on information technology will decrease by more than 10%. The average value is 4.6%.

Sagar Kadakia, ETR research director, believes that positive expectations are associated with the success of transferring employees to remote work. Pessimism is growing as business leaders become aware of the severity of the pandemic and realize that it will reduce demand and negatively affect supply chains.

"The current situation around the world will lead to changes in the structure of spending on IT and information security. At the global level spending on these areas may fall. No matter how long the coming recession may be, now it’s the right time for business to acquire the most effective means to protect corporate information, - said Dmitry Gvozdev, CEO of “Information technologies of the future” company. - This is not only about protecting information channels for remote work, but also about all local and cloud resources. Even in the most pessimistic scenario of a prolonged economic downturn, investments in information security will work to prevent incidents and to save corporate resources."

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Topics: Market Insights & Overview