The coronavirus pandemic had its inevitable effects on consumer spending and investment in 2020. With many companies finding a digital way out, IT spending is estimated to rise again next year, says study.
Technology Sector Counting the Covid Cost
Even as the economy begins to count the costs of lockdowns and decreased spending, India’s IT sector is planning ahead for imminent growth. A recent industry report estimated that, on the back of this year’s decrease in technology investment, 2021 will see a 6% growth in IT spending, reaching USD 81.0 billion.
2020 saw a worldwide decline in purchases of all kinds of devices–from smartphones to tablets and smart TVs–reaching almost 14% by the end of the year. Gartner, a global research and advisory company, predicts that enterprise software and digital services will lead the way in a period of regrouping and growth.
The Digital Light at the End of the Tunnel
The coronavirus pandemic hit many Indian businesses hard enough. And then there were those that counted upon a digital transformation going on, both nationally and globally. Amidst market uncertainties and reduced cash flows, there were some digitally advanced firms which gave true meaning to the “Digital India” initiative, turning a new leaf and preparing for a better 2021.
From small stores going online, to service packages being promoted with innovative terms and conditions, many found a reason to switch over almost completely to an online market universe. Media and entertainment were no exception, as advertising moved largely to online media, and users gave way to a new pattern of consumption. On-demand entertainment contents and the increasing popularity of online gambling are some prime examples of changing tastes in the comfort of one’s home. 10Cric in India, is a great example of another betting website that’s been able to utilise their products and offering, in order to meet the demand and structural growth that are here to stay!
A Wake-Up Call
While for many businesses the pandemic has proven a last warning to evolve or disappear, Indian technology firms are never amongst the latecomers. Remote working has long been prepared, although sometimes put off, for most of the IT sector.
Digitisation has proven to be an enabler and a chance for survival even for those who were not ready for it. The demand for more digital services and consumer support online has become evident and indispensable. With the majority of businesses looking to expand and stay afloat, IT spending is sure to return across the board in 2021. Enterprise software, IT and communication services have experienced continuous growth even in a difficult year such as the current one. Data center systems are forecast to follow close by as businesses invest in virtual support and security protocols.
IT spending looks also on the up towards the end of 2020 in tech niches such as analytical solutions, access management, encryption, cloud and automation enabling systems. IT officers in India seem to have a great deal of work on their hands as global competition gears up for a new digital battlefield. However, as plans are being reviewed and updated, there seems to be little alternative to building a strong digital and online presence in 2021.