By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) – Companies around the world whose revenues are being hit by the coronavirus pandemic plan to reduce investment in technology this year by up to 4.1%, according to a survey by the American company Enterprise Technology Research (ETR).
The drop is less than expected because many companies intend to accelerate investments to allow their employees to work remotely in the face of quarantines enacted by many governments around the globe.
The estimated drop in IT investments is between 3.7% and 4.1% in 2020, according to an ETR survey conducted this month with 1,300 technology directors and other senior executives.
Sagar Kadakia, director of research at ETR, said that considering the fact that the pandemic has wiped out the global economy through the forced elimination of consumer demand, the decline in technology investments is not as sharp as many initially thought.
This is because many companies have indicated increased investment in IT to improve their infrastructures for remote work, from a 1% share to an additional 30% of their annual budgets with technology, said Kadakia.
About 21% of the companies surveyed in the ETR survey indicated that they will increase investment because of the virus.