The ongoing coronavirus pandemic is continuously having a negative impact on the IT and tech industry. As per the recent research by Enterprise Technology Research (ETR), the CIOs are expecting to cut the IT spending by 4.1% in 2020.
The ETR research is based on the survey of more than 1000 CIOs and other decision-makers in the IT industry in the US, Europe, as well as some Asian countries.
When surveyed last year, things were completely different. Most of the CIOs were expecting to increase their IT spending this year. As per Gartner’s report last year, global IT spending was expected to grow by 3.7% in 2020, majorly due to enterprise software spending.
But the future is simply unpredictable. The coronavirus outbreak has changed everything and is impacting the global economy in a negative manner.
The revenue of almost every tech company is getting impacted because of broken supply chains, decline in demand from enterprises and individuals, and loss in employee productivity while working from home.
According to Gartner’s report last year, the coronavirus outbreak will cost the global economy over $1 trillion, which is around 1.3% of the total global economy in 2020.
A couple of months ago, Apple reported that the company wouldn’t be able to meet the quarterly revenue target because of shortage in iPhone supply in the Chinese market. This shortage is the result of COVID-19.
Along with Apple, most of the tech giants and businesses in other industries will fail to meet their quarterly revenue target.
A large number of IT and tech events and conferences have got cancelled, postponed or switched to virtual because of the ongoing pandemic. These major events include MWC Barcelona, Adobe Summit, Apple’s Worldwide Developers Conference (WWDC), Cisco Live, CloudTalk Global, to name a few.
That’s the reason the companies are focusing on cutting the costs, whether it is reducing the number of outsourced projects, reduce IT budgets, pay cuts, cut jobs, avoid new hiring, etc.