IDC Predicts 'Significant Slowdown' in IT Spending From COVID-19

The coronavirus is taking a toll on IT markets, with buyers and vendors adjusting “to a new set of assumptions and a new global economic reality,” reported International Data Corp. Wednesday. The researcher expects a “significant slowdown in spending on hardware in particular” during the first half, with software and services spending also hit from effects reverberating through supply chains, trade and business planning. A “pessimistic scenario” plots 1% IT spending growth for the year vs. an original forecast of more than 4%: “These forecasts are more likely to trend down than up in the next few weeks,” it said. IDC estimates February IT spending grew 4.3% in constant currency terms, down from a 5% projection, reflecting lowered device sales. Strong PC sales in Q4 gave way to a smartphone upgrade cycle driven by 5G, it said. Analyst Stephen Minton called the situation “extremely fluid.”