Big G says that this is based on what it is hearing from tech suppliers and keeping its ears to the ground, so some of these sources may be chewing gum and dog dirt.
It's forecasting that $3.46 trillion will be spent on IT products and services this year by businesses and consumers, down from $3.76 trillion in 2019. Gartner's estimate is the latest in a series of predictions by research firms that have become more and more pessimistic as the crisis has deepened. Last month, Enterprise Technology Research, which regularly polls IT leaders about their spending intentions, came up with a forecast suggesting a drop of around five percent in global spend for 2020.
While some companies are cutting big IT projects altogether, others are ploughing ahead but delaying some elements of their plans to save money... The research firm, which isn't betting on a rapid V-shaped economic recovery, reckons IT spending in some of the worst hit sectors such as airlines and hotels could take more than three years to rebound to 2019 levels.
Although Gartner expects all of the major categories of IT investment to drop sharply this year...spending in some sub-categories could still soar as companies accelerate digital transformation strategies. Cloud computing is a good example: Gartner expects money spent on public cloud services to rise by 19 percent.
"Companies have to be more digital than they had planned to be", said John-David Lovelock, Gartner's chief forecaster. Software that automates processes is also likely to benefit as executives push hard for greater efficiencies. A survey of 867 finance chiefs across 24 countries and territories conducted in early May by consulting firm PwC found that almost half of the CFOs expected to increase automation of operations.