As IT planning for 2021 begins, many organizations are witnessing the impacts of COVID-19 on their IT priorities and technology expenditures. The pandemic has accelerated trends like the digital transformation from individuals to companies to enable remote work, technology adoption, innovation and has forced IT leaders to adapt their budgeting accordingly. This also led companies of all sizes to cut down their IT budgets by 20% in 2020 according to Bain & Company.
Another survey from Tech Republic Premium last year reported that the money allocated to hardware budgets has slowly flowed into other areas. Hosted/cloud services had accounted for 24% of IT spending in 2021 (up significantly from 21% in 2019) and managed services had accounted for 16% of spending in the same year (up significantly from 14% in 2019).
It was also stated that in responding toCOVID-19, IT decision-makers tend to spend more on remote technologies that enable employees to work from home, 22% will spend more on security, 19% said most of their IT staff will work from home permanently, and 17% will postpone major projects. Only 6% of respondents said that COVID-19 has not affected any of their company’s IT priorities.
This year, while things appear to be more stabilized. IT departments everywhere rapidly deploy technologies to maintain business continuity during the global health crisis. Gartner predicts that tech spending will have an increase as people continue remote working with purchases in hardware such as mobile devices and personal computers leading the way, along with investments in business software.
To gain better insight and perspective on how this shift influences IT spending this year, we made an infographic of the data collected from Spiceworks Ziff Davis (SWZD), Gartner and Tech Republic Premium.
The methodology used includes rigorous sales analysis by thousands of vendors across a wide range of IT products and services as well as interviews and online activities of decision-makers. One of our resources, SWZD, has surveyed more than 1000 IT decision-makers to better understand how business technology budgets have been allocated across hardware, software, cloud services and managed IT services.
Methodology:
Combined research, survey and report from SWZD and Tech Republic. The research includes sales analysis thousands of vendors of IT products and services as well as interviews and online activities of decision-makers to understand how business technology budget will be allocated across hardware, software, cloud services and managed services.
Author
Nikki R Gunarso
Digital Marketing Specialist
Author
Nikki R Gunarso
Digital Marketing Specialist
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