According to Computer Economics’s Avasant Research team, IT spending is going down by 15 percent. Verticals like healthcare, retail, entertainment, and transportation are hit. Fear of accidental exposure to the disease is spurring these steps. So, what else is going on in all the sectors? In this article at CIO Insight, Drew Robb shades light into the reduction of IT spending due to the pandemic crisis inflicted on companies.
News on IT Spending
Computer Economics President Frank Scavo believes that IT spending will further reduce by 5 to 11 percent. However, sectors like energy and utilities, manufacturing, and public sectors are making the least budget cuts.
Some Silver Lining
13 percent of companies are increasing their funding for IT initiatives. Four out of five firms did not have to let go of their IT employees. They cannot afford to lose IT professionals when they need help in supporting their virtual workforce. Meanwhile, IT teams’ burnout rate has increased due to the additional burden of installing and updating collaboration tools for the entire company.
Since some organizations cannot access their physical office spaces and facilities, moving critical databases to the cloud was necessary. Several U.S. states have imposed restrictions. While the authorities might loosen their tight grip, businesses cannot expect the workers to opt for working at their offices soon. IT teams now have to implement hosted applications and supporting tools for the office functions to run smoothly.
2020-21 IT spending is quite different from the 2019 budget cycle. With more companies investing in remote management, virtual office spaces are here to stay. Organizations that insisted on having on-premise devices had to turn to cloud-based software to survive through the Covid-19 crisis and economic meltdown. The adoption rate would increase further as more firms want to even out their IT spending with employee productivity.
To view the original article in full, visit the following link: https://www.cioinsight.com/it-strategy/cloud-virtualization/covid-19-is-changing-it-spending-patterns.html