In a statement, Gartner said that rules on continued social distancing meant that Indian CIOs had to divert spending to business continuity. remote work and workforce collaboration.
This meant money would be poured into technologies such as desktop as a service, infrastructure as a service, virtual private networks and security. As a result, overall cloud adoption in India had increased.
“The fear of a global economic recession due to the COVID-19 pandemic is forcing CIOs in India to be very cautious on their IT spending this year,” said Naveen Mishra, senior research director at Gartner.
Expenditure on devices and data centre systems would record their steepest declines in 2020, at 15.1% and 13.2% respectively, Gartner said. Existing devices would be used for longer and this meant new purchases would be delayed.
However, spending on telehealth, smart-chatbots, mobile applications enabling deliveries, and distance learning education software would rise, while spending on enterprise software would fall by 2.6%.
“The lockdown measures forced sectors such as education, healthcare, and public utilities to accelerate their digital transformation,” said Mishra.
“However, sectors such as retail, insurance, and banking that were already advanced in their digital transformation have to reduce their IT spending in 2020.
"These sectors will continue to spend on targeted digital initiatives such as artificial intelligence, machine learning and virtual sales assistants.
"However, they will have to reduce or stop spending on business transformation, process re-engineering and modernisation of existing systems.”