IT Spend Set To Plunge As Virus Hits Asia-Pacific
SYDNEY/SINGAPORE: The COVID-19 pandemic continues to hamper economic activities around the globe, impacting businesses and industries at nearly every level, and IT markets will not be spared as IDC notes, revising its original forecasts.
In January 2020, IDC originally forecast IT spending in Asia/Pacific, excluding Japan and China (APEJC), would grow by 5.2pc –
but early indicators from the first quarter reveal that APEJC ICT spending in 2020 will plunge to just 1.2pc growth– or even worse.
Globally, the IT spend is now expected to grow at just 1.3pc, compared to the earlier prediction of 5.1pc , with China impacted the most, while APEJC is expected to decline by 2pc. Due to the extended uncertainty period and rising cases of COVID-19, these growth forecasts are predicted to fall further.
“Some of the biggest impacts we have seen as a result of COVID-19 are the changing demands on technologies, processes, and mindset, as they relate to work-from-home mandates and supply-chain disruptions,” says Sandra Ng, veep of the practice group at IDC Asia/Pacific.
For supply chain disruptions – which started in China and have rippled around the globe – the challenges of logistics are being heavily felt as countries employ border controls and restrict movements of people.
IDC broke out the following issues:
Hardware: Devices will be impacted the most, registering a declining growth of minus three-percent, versus its original forecast of plus three-percent in 2020.
Software: IDC estimates show that the impact would be seen across all software markets with the exception of digital workplace, cloud platform and automation technologies which can aid in the current situation.
IT services: Compared to effects on hardware, the coronavirus pandemic has had a constrained negative impact on the IT services market. IT services spending, which had been estimated to grow by 5.6 percent in 2020 will now register growth of 4.6 percent.