IT spending expectations remain uneven, with significant differences across countries, industries, and companies, according to the latest update to the IDC COVID-19 Tech Index. Overall sentiment in the US has dropped in the past two weeks, as businesses adjust to bearish GDP forecasts for Q2, and confidence remains soft in Europe. There are tentative signs of improvement in the Asia/Pacific region, however, with confidence levels showing gradual recovery in China and other countries.
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IT spending expectations remain uneven, with significant differences across countries, industries, and companies, according to the latest update to the IDC COVID-19 Tech Index.
Businesses continue to indicate likely cuts to spending on traditional IT products and services in the near term with deep cuts projected by companies that have been directly impacted by the COVID-19 crisis and the resulting economic shutdown. While some firms point towards increased spending on specific technologies, all indicators point towards a significant overall contraction in the next few months with the pace of recovery highly dependent on the pace and stability of measures to reopen economies around the world in Q3.
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“A month ago, overall spending projections by IT buyers were still positive in a few areas like artificial intelligence (AI) and other digital transformation projects,” said Stephen Minton, program vice president in IDC’s Customer Insights & Analysis group. “US companies were especially reluctant to impose delays on strategic IT projects and deployments, but the reality of a major economic contraction in Q2 appears to have caught up with CIOs and IT departments in the last few weeks. Where demand is still increasing, it is increasingly focused on a narrow range of technologies that are critical to support remote workers, such as videoconferencing and remote access solutions.”
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