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Gartner: IT spending will drop 8% as COVID-19 hits enterprise wallets


Gartner this week said that IT spending across the globe is projected to total $3.4 trillion in 2020, a decline of 8% from 2019 due to the impact of the COVID-19 pandemic.

In January Gartner had forecast Worldwide IT spending to total $3.9 trillion in 2020, an increase of 3.4% from 2019.

Gartner’s new forecast says all market segments from enterprise software to communications service will experience a decline in 2020, with devices and data-center systems experiencing the largest drops in spending. 

“CIOs have moved into emergency cost optimization which means that investments will be minimized and prioritized on operations that keep the business running, which will be the top priority for most organizations through 2020,” John-David Lovelock, distinguished research vice president at Gartner said in the study.

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

The study wasn’t all bleak, however, and noted that  remote working will grow, and public cloud services will be a bright spot in the forecast, growing 19% in this year. Cloud-based telephony and messaging, and cloud-based conferencing will also see high levels of spending growing 8.9% and 24.3%, respectively.

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