India’s domestic IT spending to decline 4.5% in 2020: IDC

India’s domestic IT spending, put together hardware, software, and services, is expected to decline 4.5% in 2020, as against a 9.1% growth last year, according to IDC’s Worldwide Black Book Live Edition, March 2020. While the hardware segment is likely to see a maximum drop in business; there will be […]

India’s domestic IT spending, put together hardware, software, and services, is expected to decline 4.5% in 2020, as against a 9.1% growth last year, according to IDC’s Worldwide Black Book Live Edition, March 2020.

While the hardware segment is likely to see a maximum drop in business; there will be a demand on the software side for productivity applications since the pool of remote workforce increases, said IDC in a press release.

On the IT services side, endpoint and network services will witness a stronger demand because of extended remote working options.

Growth in software is expected to drop to 4.1% in 2020 due to the impact of COVID-19 pandemic, as compared with 2019 growth rate of 16.7% given that the enterprises relook at their buying decisions owing to increased focus on profitability.

IDC also said in its latest Black Book Live edition that growth in IT services is expected to be almost flat at 6.9% in 2020, as organisations look at “maintaining the status quo” on IT services contracts.

While renewal of long-term IT services contracts will be delayed by a few quarters and organizations will adopt a wait and watch approach for non-critical IT spending; they are also looking at cloud options for business continuity, infrastructure services, and application management, said IDC.

“IT vendors are gearing up to adapt and transform the way of doing business, in a bid to support their clients during these testing times. Although IT spending will be impacted, specific solutions such as conferencing and collaboration, secure endpoint and network management, CRM, cloud storage, backup & recovery solutions, and remote support & services will continue to witness a steady rise amidst the crisis,” Shweta Baidya, senior research manager, Enterprise Software & IT Services, IDC India, was quoted saying.

Source Article

Lois C. Ferrara

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