Forecast Report

US Tech Market Outlook For 2020 To 2021

Three Scenarios Will Help CIOs Understand The Length And Depth Of The Pandemic Recession

August 26th, 2020
With contributors:
Pascal Matzke , Audrey Hecht

Summary

US CIOs and their business partners will be dealing with a steadily worsening recession in 2020, with the potential for even more problems in 2021. Hopes are quickly fading for a quick rebound in business as the US tries to bring COVID-19 under control. Overall US tech budgets will be down by 6% or so from 2019, but budget cuts will be more like 9% to 12% given planned 2020 tech budget increases of 3% to 4%. The pain so far has been concentrated in the customer-facing retail and leisure industries but will spread to other industries as layoffs and business failures ripple through the economy. Many companies in the hardest-hit industries will close, and others will fall into that camp. CIOs need to have flexible tech budget plans to deal with likely downturns or less likely upturns in their business outlook.

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