Companies world-wide are diverting capital spending from information-technology hardware to cloud services, artificial intelligence and other tools that hold the promise of cutting costs and boosting revenue, according to research group International Data Corp.
Overall corporate spending on enterprise technology is expected to decline this year, as companies slash IT budgets to cope with a downturn in business sparked by the coronavirus pandemic, the research group said in a report Wednesday.
The group’s IT spending index dropped to 987 in April, down from 1,005 in March. The index is based on a global survey of enterprise IT buyers and a composite of market and economic indicators. A score above 1,000 indicates that IT spending is expected to increase, while a score below 1,000 points toward a likely decline.