The Impact of COVID-19 on IT Budgets in 2020

November, 2020

The coronavirus pandemic of 2020 has led to a worldwide recession, with a significant impact on IT budgets. Because our current IT spending benchmarks adjust based on levels of business activity, they can still be applied in times of economic decline. Nevertheless, many IT leaders want to understand how IT spending is being influenced by current pandemic and economic conditions. Based on our special survey, this report outlines how the pandemic is affecting IT operational budgets, IT capital budgets, IT staff head counts, compensation, outsourcing, budgets for new projects, and the use of the public cloud. We also report how long IT leaders expect it will take for their budgets to recover from the current recession. We also forecast expected IT spending cuts by industry for all of 2020, along with our recommendations for IT leaders in managing their spending through the crisis. (22 pp., 11 fig.)

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Avasant’s research and other publications are based on information from the best available sources and Avasant’s independent assessment and analysis at the time of publication. Avasant takes no responsibility and assumes no liability for any error/omission or the accuracy of information contained in its research publications. Avasant does not endorse any provider, product or service described in its RadarView™ publications or any other research publications that it makes available to its users, and does not advise users to select only those providers recognized in these publications. Avasant disclaims all warranties, expressed or implied, including any warranties of merchantability or fitness for a particular purpose. None of the graphics, descriptions, research, excerpts, samples or any other content provided in the report(s) or any of its research publications may be reprinted, reproduced, redistributed or used for any external commercial purpose without prior permission from Avasant, LLC. All rights are reserved by Avasant, LLC.

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