The domestic IT spending in India is expected to decline by 4.5% in 2020. Last year it had shown a growth of 9.1% but this year it is expected to show a decline. This prediction was made by IDC’s Worldwide Black Book Live Edition, March 2020.
In a press release, IDC said that the hardware segment is also likely to see a drop. The drop in business is due to the outbreak of COVID-19. However, there will be a demand for software products because work from home is encouraged.
IT services like communication services or networking or entertainment software will see a strong increase. As software workers are informed to follow work from home concept. Even though there is an increase in software usage it is expected to drop to 4.1% in 2020 due to the impact of COVID-19 pandemic. Last year the software sector had seen a growth of 16.7%.
IDC’s predictions:
In latest Black Book Live IDC had said growth in IT services is expected to be almost flat at 6.9% in 2020, as organizations look at “maintaining the status quo” on IT services contracts.
Also IDC added that the renewal of long-term IT services contracts will be delayed by a few quarters. The organizations will adopt a wait and watch approach for non-critical IT spending. They are also looking at cloud options for business continuity, infrastructure services, and application management.
Shweta Baidya, senior research manager, Enterprise Software & IT Services IDC India says” IT vendors are gearing up to adapt and transform the way of doing business, in a bid to support their clients during these testing times. Although IT spending will be impacted, specific solutions such as conferencing and collaboration, secure endpoint and network management, CRM, cloud storage, backup & recovery solutions, and remote support & services will continue to witness a steady rise amidst the crisis”.