Global companies whose revenues have taken a hit during the coronavirus pandemic plan to cut technology spending this year by as much as 4.1%, according to the latest survey from US-based Enterprise Technology Research (ETR).
But that forecast drop in tech budgets would be less than initially feared because many companies actually intend to accelerate spending to support thousands of employees that now have to work from home as the majority of governments around the world ordered national lockdowns.
Corporate revenue has taken a hit from broken supply chains, less demand from consumers and businesses and productivity losses with most employees working from home.
The fallout from the virus outbreak will result in a cut of between 3.7% to 4.1% in IT spending for 2020, based on ETR’s poll this month of about 1,300 of global chief information officers and other senior tech executives.
ETR regularly polls large numbers of CIOs and other senior tech executives about spending intentions.