Spiceworks Ziff Davis Study Reveals the Impact of COVID-19 on IT Budgets and Emerging Tech in 2021
Despite stagnating revenues, 80% of businesses expect IT budgets to grow or remain steady next year
Today Spiceworks Ziff Davis announced its annual 2021 State of IT study examining technology budget shifts and emerging technology adoption trends in organizations across North America and Europe.
The findings show the global COVID-19 crisis to be a catalyst for change, spurring businesses to continue to invest in technology to support and secure a remote workforce, despite slowing corporate revenue growth resulting from the pandemic. Of the more than 1,000 businesses surveyed, 76% plan on long-term IT changes as a result of COVID-19, and 44% plan to accelerate digital transformation plans.
However, with organizations looking to cut back on expenses, tech budget growth has slowed compared to last year. Among businesses taking part in the study, 33% plan to increase their IT budgets in 2021, compared to 44% in the prior year, while 17% of companies expect IT budgets to decline in 2021.
Similar to findings from previous waves, replacing aging IT infrastructure and growing security concerns will be among the biggest drivers of budget growth next year. But with more than half of businesses planning to retain flexible work policies permanently, the “remote work revolution” will continue to drive new spending. Among the businesses increasing IT spend in 2021, the following factors will influence budget growth next year: Increased priority on IT projects (45%), changes to business operations during COVID-19 (38%), and the need to support a remote workforce (36%).
“During the rush to remote work caused by the pandemic, it quickly became clear that technology is the glue that keeps businesses and employees connected,” said Peter Tsai, senior technology analyst at Spiceworks Ziff Davis. “With more people working remotely than ever before and face-to-face meetings out of the question, organizations wouldn’t have