IT spending in India to fall 8% in 2020 due to Covid-19, first dip in 5 years: Report

IT spending in India will fall 8.1% to $83.5 billion in 2020, according to research firm Gartner, the first decline in five years.

“The fear of a global economic recession due to the Covid-19 pandemic is forcing CIOs in India to be very cautious on their IT spending this year,” said Naveen Mishra, senior research director at Gartner. “In partnership with their CFOs, CIOs in India are reprioritising their IT budgets on mission-critical initiatives.”

Spending on devices and data centre systems in India will see the steepest declines this year, falling 15.1% and 13.2%, respectively, according to the firm. CIOs will consider extending the use of existing devices, which will delay new purchases.