Tuesday, 19 May 2020 08:03

Gartner predicts 8% fall in global IT spending in 2020

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Gartner predicts 8% fall in global IT spending in 2020 Image by Free-Photos from Pixabay

Global IT spending will fall by 8% in 2020 year-on-year, the technology research firm Gartner has predicted, adding that total spending would come to US$3.4 trillion.

In a statement, the company said the coronavirus pandemic and the recession it had caused had made firms prioritise spending on technologies and services deemed "mission-critical".

“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 organisations through 2020,” said John-David Lovelock, distinguished research vice-president at 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.”

Gartner said all segments would see a drop in 2020, with devices and data centre systems the hardest hit. But, given the increase in working from home, sub-segments like public cloud services would grow by 19% during the year.

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Another segment to see growth would be cloud-based telephony and messaging and cloud-based conferences, with the former growing by 8.9% and the latter by 24.3%.

Said Lovelock: "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.

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

“Recovery requires a change in mindset for most organisations. There is no bouncing back. There needs to be a reset focused on moving forward.”

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Sam Varghese

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Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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