IT spending faces crisis in Asia Pacific due to coronavirus impact

IT spending in Asia Pacific excluding Japan and China (APEJC) will be growing at 1.2 percent due to coronavirus impact, according to IDC research report.
IDC in January 2020 forecasted Asia Pacific excluding Japan and China IT spending to grow by over 5.2 percent this year due to the expected boost in hardware, software, and services spending on infrastructure.

Globally the IT spend is expected to grow at 1.3 percent compared to the earlier prediction of 5.1 percent.

IT spending in China is expected to decline by 2 percent.

“In countries like Singapore, India, Hong Kong and ANZ where considerable organizations provide work-from-home (WFH), we have already seen an uptake of video meetings, audio conference calls, and collaboration platforms as a result of rethinking work,” Sandra Ng, group vice president, Practice Group at IDC Asia/Pacific, said.

The challenges of logistics impact SMB’s the most, which in turn will have impact on all organizations as non-delivery of a single crew can mean even the largest product cannot be assembled and shipped,” says Christopher Holmes, managing director at IDC Insights Asia Pacific.

Sales of devices will be registering a declining growth of -3 percent versus its original forecast of +3 percent in 2020.

Software spending would see a slowdown due to business impact in Transportation, Manufacturing, Retail, Personal and Consumer Services, and Banking (lending), which consequently is delaying the discretionary spend on software licenses.

The COVID-19 pandemic has a constrained negative impact on the IT services market. IT services spending which was estimated to grow by 5.6 percent will now register a growth of 4.6 percent instead in 2020.