Gartner Predicts Slump in Global IT Spend for 2020

Sharon Holland

According to research firm Gartner global IT spending is projected to slump by 8%, compared with 2019, as a result of Coronavirus.

Back in January and pre-pandemic, Gartner had forecasted IT spending in 2020 to total $3.9tn.  They have now revised that forecast to $3.4tn.

This decline comes just when businesses are more dependant than ever on technology to continue working remotely. However, as organizations have seen their revenues drop during the pandemic, they have reduced their overall spending in the face of economic uncertainty.

Gartner’s Q2 2020 Worldwide IT Spending report predicts that CIOs will turn to cloud subscription services as they look to work through their IT backlog because of their lower upfront costs.

Despite the fall in IT spending in 2020, Gartner anticipates growth to pick up to 4.3% in 2021. 

“Overall IT spending is still expected to sharply decline in 2020 but will recover in a faster and smoother manner than the economy,” said John-David Lovelock, research vice president at Gartner. “Still, organizations cannot return to previous processes that are now rendered outdated due to the disruption of their primary revenue stream during the pandemic.”

“In 2020, some longer-term cloud-based transformational projects may be put on hiatus, but the overall cloud spending levels Gartner was projecting for 2023 and 2024 will now be showing up as early as 2022,” said Mr. Lovelock.

However analytics firm GlobalData, believes that – some 50% of firms are increasing their IT budgets in response to the coronavirus pandemic. The company said that the virus has accelerated the rate at which organizations embrace technology into their workforce.

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