Global business spending down 4.1% this year, survey shows

BEIJING, April 1 (Xinhua) — Companies around the world plan to cut technology spending by up to 4.1 percent this year as a result of a new coronavirus outbreak that has affected revenue, according to a new survey by the U.S. Enterprise Technology Research Corporation (ETR), according tomedia reports. The drop was smaller than initially feared. That’s because, with most governments around the world ordering nationwide closures, many companies have decided to speed up spending so that thousands of employees can work from home.

Global business spending down 4.1% this year, survey shows

Infographic

In this outbreak, corporate revenues were affected by broken supply chains, declining consumer and corporate customer demand, and the efficiency of most employees working from home.

According to ETR’s survey of about 1,300 CIOs and other technology executives worldwide this month, the outbreak will cause global IT spending to fall by 3.7% to 4.1% by 2020. The agency regularly conducts surveys of CIOs and other technology executives to understand the intent of technology spending. Earlier this year, global technology executives planned to increase spending by 4% in 2020.

Sagar Kadakia, research director at ETR, said the decline in technology spending was not as bad as many initially thought, given the impact of the outbreak on the global economy and the loss of demand from many consumers. Many organizations have said that as their “work-from-home” infrastructure strengthens, their technology spending will increase, from 1 per cent to more than 30 per cent of their annual IT budget.

So far, about 21 percent of the organizations surveyed by eTR say spending has increased as a result of the outbreak. Globally, companies in the health, education and financial sectors have expressed interest in increasing spending.

“As we move to more remote work, we’re shifting some of our spending to mobile devices so that users can work remotely,” said an information security executive in the North American education industry. This increases the cost of laptops and tablets, but we can’t get new devices from our suppliers fast enough. “