cxo voice
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release
No Result
View All Result
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release
No Result
View All Result
Leaders Talk and Latest Tech News | CXO VOICE
No Result
View All Result
Home News Business

IT Spending Indicators May Be Bottoming Out for Now but US Business Confidence Continues to Plunge: IDC COVID-19 Tech Index

News Desk by News Desk
May 22, 2020

IT spending appears to be stabilizing and bottoming out in many countries, reflecting a period of relative calm before economic lockdown measures are expected to be eased in the next few weeks. However, confidence levels in the US continue to plunge and US firms show a wide range of expectations, including some that anticipate even deeper cuts to IT spending than two weeks ago, according to a new update to the IDC COVID-19 Tech Index.

In countries including China and Germany, overall IT buyer confidence has continued to improve. While the overall index in Europe and many Asia/Pacific countries remains below 1000, indicating a contraction in IT spending, scores have edged up slightly compared to two weeks ago in the latest IDC global survey of IT buyers. Market indicators in both regions have also stabilized with some countries gradually easing their lockdown measures and government stimulus spending continuing to provide some degree of short-term stability.

Source: IDC

“While IT spending is still declining in Asia/Pacific and Europe, and some sectors of the economy will remain under severe pressure over the near term, there is some sense that we may have reached a turning point,” said Stephen Minton, vice president, Customer Insights & Analysis at IDC. “This is not yet a turning point in terms of returning to growth overall, but a sense amongst many businesses that if economic restrictions are eased carefully and gradually, and if there is not a major second wave of infections in the second half of 2020, things will not get worse and we will have a slow but steady recovery beginning in the third quarter.”

The COVID-19 Tech Index uses a scale of 1000 to provide a directional indicator of changes in the outlook for IT spending and is updated every two weeks. The index is based partly on a global survey of enterprise IT buyers and partly on a composite of market indicators, which are calibrated with country-level analyst inputs relating to medical infection rates, social distancing, travel restrictions, public life, and government stimulus. A score above 1000 indicates that IT spending is expected to increase, while a score below 1000 points towards a likely decline.

COVID-19 Tech IndexMarchAprilMay V1May V2
Buyer Intent10231006983982
Market Indicators988969944943
Total Index1005987964962
Source: IDC COVID-19 Tech Index, May 2020 (Release 2)

Note: Index scores above 1000 indicate an expected increase in IT spending for 2020 overall; scores below 1000 indicates a projected decline.

While confidence levels have stabilized in Asia/Pacific and Europe, they continue to plunge in the US where businesses now expect even deeper cuts to IT budgets this year than in the previous survey two weeks ago. There is a wide range of confidence levels among US firms with significant variation by region, company size, and industry. Many companies remain confused by conflicting signals and are worried about a second wave of infections if lockdown measures are not eased carefully, while others remain concerned that the pace of ending restrictions is too slow.

ADVERTISEMENT

“US firms are still very confused and the lack of business visibility is putting pressure on short-term IT planning,” said Minton. “Whatever your opinion about the pace of ending economic restrictions, and what this will mean for a possible second wave of infections, what we all know is that a lack of visibility isn’t good for IT spending or business planning in general. While there is a sense of things bottoming out for now in other parts of the world, we have not yet reached a similar broad consensus in the US that this point has been reached.”

The IDC COVID-19 Tech Index is a leading indicator for IT spending, which is designed to provide rapid updates to changes in buyer sentiment and underlying market indicators before these are factored into official market and macroeconomic forecasts. The index is based on a scale whereby a score higher than 1000 indicates growth in IT spending, while a score below 1000 indicates a decline. Complete results from the most recent index as well as additional research related to the pandemic can be found on IDC’s COVID-19 microsite at https://www.idc.com/covid19.

The index is based on surveys of enterprise IT buyers around the world, who are asked to provide guidance on a variety of factors including general business confidence, overall IT spending plans and specific changes to budget allocations for individual technologies. Additionally, the index score is weighted with a composite of “market indicators” that include macroeconomic forecasts calibrated with inputs relating to medical data, social isolation measures, and the impact of government stimulus.

IDC will host a special COVID-19 Tech Index webinar on June 9th at 11:00 am U.S. Eastern time. In the presentation, Stephen Minton will discuss the most recent index results, the outlook for technology spending by region, and how the pandemic is impacting various organizations around the world. Details and registration for this webinar are available at https://bit.ly/2A1RDQ3.

Learn how IDC can help your organization anticipate and respond to market changes brought on by the coronavirus pandemic. IDC’s COVID-19 resource site offers research, market data, webinars, and blog articles that can help decision-makers plan their next moves in response to the latest developments.

  • Overall Global IT Spending to Decline by 8% in 2020: Gartner
  • Working from home: lessons to maintain leadership during the lockdown
  • [Opinion] Key solutions that will become commonplace in the post-COVID-19 business ecosystem

News Desk

News Desk

by CXO VOICE team memebrs, [email protected]

Related Posts

Business

IT Spending in Australia to Exceed $172 Billion in 2026: Gartner Forecasts

September 8, 2025
Lenovo AI
Technology

Lenovo Unveils Groundbreaking AI Innovations at Innovation World 2025

September 5, 2025
Brett Theiss
People

Check Point Software Welcomes Brett Theiss as New Chief Marketing Officer to Drive Global Growth

September 5, 2025
SailPoint and HCLTech
Business

SailPoint and HCLTech Unite to Transform Identity Security for AI-Driven Enterprises

September 5, 2025
IBM Campaign AI
Business

IBM Launches New Campaign to Accelerate AI in Business

September 4, 2025
Tata Power EZ Home
Business

Tata Power Launches EZ Home Automation Solutions in Siliguri

September 4, 2025
Fujitsu with 1Finity and Arrcus
Technology

Fujitsu Partners with 1Finity and Arrcus to Enhance Network Solutions for AI and Data Transfer

September 3, 2025
bob Digi Udyam
Finance

Bank of Baroda Launches ‘bob Digi Udyam’, a Quick, Collateral-Free Loans for MSEs

September 3, 2025
Load More
Please login to join discussion
ADVERTISEMENT

Latest Updates

IT Spending in Australia to Exceed $172 Billion in 2026: Gartner Forecasts

by News Desk
5 hours ago

Lenovo AI

Lenovo Unveils Groundbreaking AI Innovations at Innovation World 2025

by Arshi Khan
3 days ago

Brett Theiss

Check Point Software Welcomes Brett Theiss as New Chief Marketing Officer to Drive Global Growth

by Deepa Sharma
3 days ago

SailPoint and HCLTech

SailPoint and HCLTech Unite to Transform Identity Security for AI-Driven Enterprises

by News Desk
3 days ago

IBM Campaign AI

IBM Launches New Campaign to Accelerate AI in Business

by Deepa Sharma
4 days ago

Tata Power EZ Home

Tata Power Launches EZ Home Automation Solutions in Siliguri

by News Desk
4 days ago

Expert Views

Cyber Security

Why Even One Unpatched Device Can Be a Catastrophic Risk for Startups and SMBs

July 25, 2025
Cyber Criminals
Cyber Security

How WormGPT Became ChatGPT’s Evil Twin

July 15, 2025
Opinion

When AI Empowers Both Networks and Hackers: The New Battlefield for India’s Telecoms

May 20, 2025
Molly Sands AI
AI

AI RIP: 5 Things Knowledge Workers Will Say ‘Sayonara’ to in the Next Decade

March 8, 2025
multi cloud
Cloud

Multi-Cloud Made Simple: Strategies for Smart Business Management

March 5, 2025

Get Latest Update

Subscribe to our mailing list to receives newsletter direct to your inbox!

ADVERTISEMENT

Leaders Interviews

Tokenization
Interview

Revolutionizing Finance: An Exclusive Interview with Sid Ugrankar, Co-founder of Qila.io on the Future of Blockchain and Tokenization

-
Steve Wilson, GenAI Cybersecurity LLMs
Cyber Security

How effective is GenAI in cybersecurity? The role of LLMs and AI in security solutions. [Interview with Steve Wilson]

-
Interview on Counterfeit products with Nikhil Narayan
Leaders Talk

Advancements in ML & AI made it possible to detect counterfeit products in real-time, says Nikhil Narayan

-
Newgenone bridges the gap between business users and IT teams with its low code capability: Varun Goswami
Leaders Talk

Newgenone bridges the gap between business users and IT teams with its low code capability: Varun Goswami

-

Entrepreneur

Samsung Electronics appoints its first female president

Inspiring Women Entrepreneurs in India (2022)

Technology Adoption For Entrepreneurs

Volunteering management is the need of the Hour

CXOVoice.com is a leading online publication for CXOs, entrepreneurs, senior leaders, developers, and industry professionals. Our coverage spans key sectors, including IT, technology, banking, finance, cybersecurity, engineering, and automobiles.

Connect with us

Easy Links

  • Cryptocurrency
  • Event
  • Blockchain
  • Press Release
  • Resources & Downloads

Write Us

[email protected]
  • Home
  • About Us
  • Contact Us
  • Advertise
  • Privacy & Policy
  • Feedback

Copyright © 2025 CXOVoice - All Right Reserved

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

No Result
View All Result
  • Home
  • Technology
    • AI
    • Cloud
    • Telecom
    • Data Center
    • BPM
    • Blockchain
  • Finance
    • Banking
  • Cyber Security
  • View Points
  • Leaders Talk
  • News
  • Press Release
    • Submit Press Release

Copyright © 2025 CXOVoice - All Right Reserved