IT spending expected to dramatically dip due to coronavirus

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The global spending on IT is forecasted to decrease for the year due to the unknown impacts of the coronavirus, according to The Wall Street Journal.

Companies are anticipated to reduce their spending on IT initiatives. Market analysts predict the declines in spending will outweigh the short-term gains from spending sprees. Currently, businesses are stocking up on software, mobile devices and other IT tools as they increase their remote workforce.

"Any upticks will be offset by the negative impact overall when this shakes out," said Stephen Minton, vice president of customer insights and analysis at technology research firm International Data Corp., to WSJ.

IDC expects annual growth in global IT spending for 2020 to drop to 1 percent. It was initially projected to grow more than 4 percent. In a worst-case scenario, IDC said the total IT spending will cap at $2.3 trillion, which is drastically down from the $2.5 trillion estimate.

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