Posted by Mumbai: Enterprise ICT budgets in India to fall around 10% to 20% this year. Indian enterprises across industries expect a decline in their proposed ICT budgets for 2020 due to the COVID-19 outbreak, claims a survey of enterprise ICT decision-makers from GlobalData.
About 36.2% enterprise ICT decision-makers surveyed claim that their enterprise ICT budgets for 2020 would see about a 10% decline compared to the planned before COVID-19 crisis.
While 31.4% of India respondents claim that their enterprise ICT budget would see over 20% decline post the COVID-19 outbreak, according to GlobalData’s Enterprise ICT Investment Trends in India 2020 report.
255 ICT decision-makers participated in GlobalData’s survey.
A large percentage of enterprises would use their intended ICT budget on running or maintaining their existing ICT systems. Others believe their enterprise ICT budgets would be used for new investments, the survey highlights.
India, although was able to halt the initial rapid spread of COVID-19, the prolonged lockdown measures led much of the economic activities to a standstill till recently.
Economic activities are expected to boost up due to lockdown relaxation in the short term. But still is insufficient to make up for the revenue losses incurred by most businesses.
“This trend is in line with the weak business sentiment seen among the enterprises in India amidst the crisis. Weaker consumer demand, disruption in the supply chain, tightening of cash flows and a major decline in exports due to global uncertainty are the major concerns for enterprises,” said Saurabh Daga, Technology Analyst – GlobalData.