New Delhi, July 6 While overall IT budget is likely to reduce by four per cent on average amid Covid-19 pandemic, Indian enterprises will increase spending on Internet connectivity, security solutions and networking products, a new report said on Monday.
The IT budget has shifted towards more immediate priorities, to build resilience for the new normal, said the study.
"The big bang transformations of the pre-COVID era have been streamlined, in favour of more strategic enterprise IT priorities," said Anil Chopra, Vice President, Research, CyberMedia Research (CMR).
"While there is an increased realization on digital transformation, the new economic realities have put pressures to rationalize IT costs. As such, CIOs (Chief Information Officers) will need to prudently assess on where to invest," Chopra added.
While enterprises were already high on their digital transformation journeys, the current crisis has accelerated the shift for others, said the study, adding that three in every four organizations will focus on digitization in the neo normal.
Organisations 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, brand trust will rule over all other metrics when it comes to vendor selection, said the CMR "Digital Transformation in the Neo Normal" report.
The findings are based on primary interactions with 149 CIOs 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 organisations.
( With inputs from IANS )