Worldwide tech spending is projected to decline 3% due to the impact of the COVID-19 pandemic, according to a new forecast by the International Data Corporation (IDC).
Hospitality, tourism-related industries and consumer services are expected to be the most negatively affected markets with tech spending there projected to decline by 5% or more, although those markets are a relatively small part of overall technology spending.
However, some “recession resistant” industries are projected to grow.
Professional services are estimated to see the strongest growth in tech spending, projected to grow 2% compared to a year ago.
There also are differences based on company size.
Tech spending at businesses with fewer than 10 employees is projected to decline 5%, those with 10 to 99 employees 3% and large businesses with 500 or more employees 1%.
"While industries that offer digitally-enabled or critical services offer some bright spots, those industries that rely on physical products, an in-person presence or provide luxury services are struggling," states Jessica Goepfert, program vice president, customer insights and analysis. "Industries that have suffered major shutdowns and layoffs will be slower to invest in technology than those that have been able to maintain somewhat normal operations.”