Indian IT leans on govt spends, managed services as deals slow – ETtech

Illustration: Rahul Awasthi

Information Technology spending this yr will probably fall as organisations trim investments in know-how within the wake of the Covid-19 pandemic-led slowdown, analysts mentioned.IT advisory IDC estimates that home IT spending this fiscal yr will decline 4.5% to $55.5 billion.

This will likely be on the again of a “double whammy of sharp fall in device shipments and organisations limiting investments for critical demand,” Shweta Baidya, senior analysis supervisor, IDC India, informed ET.

In 2019, general IT spending, together with {hardware}, software program and IT services, recorded greater than 9% progress.

However, authorities businesses and enterprises are persevering with to put money into software program and IT services, serving to the market stay secure.”Spending in software IT services is still stable and will see tepid growth compared with last year. Software growth is so far driven by security applications, automation tools, collaboration tools etc. On the IT services front, we have not seen a major impact as of now,” Baidya mentioned.

While brief-time period initiatives are getting stalled, the managed services phase, which fetches important income for service suppliers, has nonetheless not been impacted by the outbreak.

Technology services suppliers and {hardware} firms didn’t remark. Microsoft mentioned it was focusing on serving to shoppers construct financial resilience utilizing new-age applied sciences.

“During an unprecedented time like this, technology plays a critical role in building economic resilience and supporting business continuity. As a platform and tools provider, we are committed to helping organisations of all sizes build the digital capability required to keep their businesses moving forward,” mentioned a Microsoft spokesperson.

Other analysts, nevertheless, mentioned {hardware} deals have been nonetheless being signed, however not on the similar tempo or measurement as final yr.

Leave a Reply

%d bloggers like this: