Study Indicates Massive Recession for the IT Sector?

According to a Research study by Gartner, the world’s leading research and advisory company, the global IT spending is projected to total $3.4 trillion in 2020, a decline of 8 percent from 2019, impacted by the Coronavirus (Covid-19) outbreak.

Companies are prioritizing spending on technology and services that are deemed “mission-critical” over initiatives aimed at growth or transformation. Almost all the companies are looking at emergency cost optimization to plug necessary wastages throughout 2020.

This very much indicates an impending Recession and thereby job-cuts. The study further predicts that the IT spending recovery will take a minimum of three years to come back to 2019 IT spending levels. The situation is likely to be worse if the normalcy is not restored quickly.

This is a dangerous situation for India as Information and Technology are one of the biggest employment providers in the country, especially in the Service Sector.