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Gartner Slashes IT Spending Forecast by 8 Percent; CIOs to Prioritise Investment Differently

The global  IT spending is projected to total $3.4 trillion in 2020, a decline of 8% from 2019, according to research firm Gartner.

The coronavirus pandemic and effects of the global economic recession are causing CIOs to prioritise spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation.

“CIOs have moved into emergency cost optimisation which means that investments will be minimised and prioritised on operations that keep the business running, which will be the top priority for most organizations through 2020,” said John-David Lovelock, Distinguished Research VP, Gartner. “Recovery will not follow previous patterns as the forces behind this recession will create both supply side and demand side shocks as the public health, social and commercial restrictions begin to lessen,” he said

According to Gartner, all segments will experience a decline in 2020, with devices and data center systems experiencing the largest drops. In the wake of a spike in remote working, certain sub segments such as public cloud services will be a bright spot in the forecast, growing 19% in 2020. Cloud-based telephony and messaging and cloud-based conferencing will also see high levels of spending growing 8.9% and 24.3%, respectively.

“IT spending recovery will be slow through 2020, with the hardest hit industries, such as entertainment, air transport and heavy industry, taking over three years to come back to 2019 IT spending levels,” said Lovelock.

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Image courtesy: SiliconAngle

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