The latest Gartner report said IT spending is forecast to drop 8 percent to $3.4 trillion in 2020 as CIOs will focus on priority areas in the wake of Covid-19 epidemic.
Spending on data center systems will drop 9.7 percent to $191.122 billion in 2020.
Spending on enterprise software will dip 6.9 percent to $426.255 billion in 2020.
Spending on mobile and PC devices will decrease 15.5 percent to $589.879 billion this year.
Spending on IT services will decline 7.7 percent to $952.461 billion in 2020.
Spending on communication services will decrease 4.5 percent to $1296.627 billion in 2020.
The coronavirus pandemic and effects of the economic recession are causing CIOs to prioritize spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation.
“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,” said John-David Lovelock, distinguished research vice president at Gartner.
“In 2020, some longer-term cloud-based transformational projects may be put on hiatus, but the overall cloud spending levels Gartner was projecting for 2023 and 2024 will now be showing up as early as 2022,” John-David Lovelock said.
IT spending recovery will be slow in through 2020, with the hardest hit industries, such as entertainment, air transport and heavy industry, taking over three years to come back to 2019 IT spending levels.