This IDC Presentation examines the first-order impact of the freefalling price of crude oil on the Canadian ICT sector. Worldwide price of crude oil has continued its decline from over US$100 per barrel past the US$50 bbl mark; Canadian businesses and governments are facing the downside of the commodity cycle — What to do when the bubble bursts? The Canadian energy patch has already announced reductions in capital expenditures that collectively amount to over C$9 billion less in 2015 than the year before. Meanwhile, all three levels of government await the decline in their budgets caused by a shortfall in resource royalties. For each C$1 per barrel drop in the price of Alberta's oil over a 12-month period, the provincial government takes in C$215 million less in revenue.
This Presentation contains three main components. First, it predicts how energy and government CIOs will react to their new business environment. Second, IDC Canada proposes a new scenario for relevant ICT spending forecasts including hardware, software, services, and telecom. Third, we offer guidance to both CIOs and ICT vendors in terms of shaping a proactive response to the predicted cost-cutting period to come.
Canadian CIO Executive Service , Canadian ICT Executive: Business and Technology Perspectives , Canadian Vertical Markets , IDC Government Insights: Canadian IT Opportunity: Government