IDC predicts coronavirus will stunt IT spending
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International Data Corp. is based in Framingham.
The coronavirus will stunt information technology spending this year, according to a forecast from Framingham-based International Data Corp.
The coronavirus has already had an impact on IT markets, according to IDC, with the virus’ outbreak impacting supply chains, trade and business planning. Based on the first quarter performance, IDC is forecasting a significant slowdown in spending on hardware during the first half of 2020 with software and services also expected to be impacted.
The result of this slowdown will be a 1% growth in IT spending, down from a previously estimated 4% growth for the year. This is a pessimistic scenario, according to IDC.
“We are using scenario models to illustrate that forecasts have a wider range than usual, and the downside risks in those models seem to be increasing every day. But the duration of the crisis remains a big unknown and will go a long way in determining overall market growth for the year as a whole," said Stephen Minton, vice president in IDC's customer insights & analysis group, in the report.
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