Pandemic reorients enterprise IT spend to fuel resilience for the neo normal: CMR Study

According to new research by CyberMedia Research (CMR), the COVID-19 pandemic has contributed to a shift in enterprise IT spend, and a greater thrust to digital transformation.

The study titled “Digital Transformation in the Neo Normal” is based on a primary survey conducted in May and June 2020.

As per the study findings, while overall IT spending is likely to reduce by 4% on average, the IT budget has shifted towards more immediate priorities, to build resilience for the neo normal.

The study provides insights across small, mid- and large-sized enterprises, with a view on CIOs versus CEOs. Additionally, the study lists key recommendations for enterprises to adopt to navigate to the new normal.

“The big bang transformations of the pre-COVID era have been streamlined, in favor of more strategic enterprise IT priorities.

While there is an increased realization of digital transformation, the new economic realities have put pressure to rationalize IT costs. As such, CIOs will need to prudently assess where to invest.,” said Anil Chopra, VP- Research, CyberMedia Research.

Key Study Findings

The big bang transformations of the pre-COVID era have been streamlined, in favor of more immediate enterprise IT priorities.

IT Spend will increase in the following areas.

Internet connectivity (88%)

Security Solutions (74%)

Networking products (62%)

While enterprises were already high on their digital transformation journeys, the current crisis has accelerated the shift for others. Three in every four organizations will focus on digitization in the neo normal.

Digitization (76%)

Upgradation and modernization of the system (48%)

Infrastructure Consolidation (38%)

Organizations are strategically experimenting with emerging technologies, but not planning to invest heavily unless they see tangible benefits in the near-term.

The pandemic has impacted CIO priorities, making them consider the long-term impact of the crisis on their business. In the neo normal, the brand trust will rule over all other metrics when it comes to vendor selection.

Research Methodology

The CMR “Digital Transformation in the Neo Normal” report is based on primary interactions with 149 CIOs, through to senior and mid-level IT management, from across a range of industries, including IT, financial services, retail, public sector, manufacturing and automotive, and media and communications. The study covered small, medium, and large-sized organizations.