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Technology Budgets Hit Hard by Covid-19

More than half of US companies said they would reduce IT spending, especially in healthcare, retail and industrial manufacturing.

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Technology Budgets Hit Hard by Covid-19
en

More than half of US businesses have cut their budgets for technology hardware, software and services this year, in response to the Covid-19 pandemic and related economic fallout. In April, Bain asked IT decision makers across industries about their spending plans and found 40% had already trimmed budgets; by May, 55% of them had made cuts. Companies in all industries planned to reduce IT spending, but those in healthcare, retail and industrial manufacturing saw the deepest cuts. Spending for on-premise hardware and software suffered most, while investments in SaaS and public cloud increased. Vendors will need to understand how long these cuts (and surges) in various tech categories will last, how much spending will revert to historical patterns, and how they can tailor their portfolio of offerings to address shifting customer needs.

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