4.5% dip in India’s IT spending amid virus: IDC

Research firm IDC  reveals that India’s domestic IT spending on hardware, software and services is expected to drop by 4.5% in 2020 owing to the coronavirus pandemic, against a growth rate of 9.1% in 2019. The firm in its Worldwide Black Book Live Edition stated that hardware segment will contribute the most to this decline; while there will be a 4.1% dip in expenditure on software.

The company also added that growth in IT services is expected to be almost flat at 6.9% as enterprises look at maintaining the status quo on IT services contracts. Endpoint and network services will witness a robust demand, according to the study, because of extended remote working options.

“Hardware and software implementation or integration services will be slightly impacted because of the non-deployment/non-availability of new hardware or software. Implementation and integration services will be severely impacted,” IDC observed.

It expects that there will be a demand for productivity applications as the remote workforce increases. Further, collaborative tools, cloud platforms, security solutions, automation technologies, and most of the other applications will post only marginal growth.