||Andrea Loziuk (IDC)
| ||Nigel Wallis (IDC Spokesperson)
Canadian firms are expected to cut upwards of C$415M from their Information and Communications Technology (ICT) budgets as a reaction to falling oil prices in the country according to the latest figures released by International Data Corporation (IDC). The Impact of Declining Oil Prices on the Canadian ICT Market, is a new presentation report that examines the first-order impact of the freefalling price of crude oil on the Canadian ICT sector, including hardware, software, services and telecom.
“The rapid decline in energy prices won’t leave the ICT sector unscathed” says Nigel Wallis, Research Director for Vertical Markets at IDC Canada. "With the worldwide price of crude oil continuing its decline from over US$100 per barrel to below US$50, the Canadian energy patch has already announced reductions in planned 2015 capital expenditures that collectively amount to over C$9B less than 2014. We anticipate that as a first-order response, Canadian firms and governments will cut over $415 million from their ICT spend in 2015, predominantly in Alberta."
In addition, IDC Canada's research anticipates that:
The IDC Presentation examines how energy and government CIO's will react to their new business environment, while proposing a new scenario for relevant ICT spending forecasts including hardware, software, services and telecom. In addition, it offers recommendations for CIO's and ICT vendors on how to shape a pro-active response to the cost cutting.
"Technology plays a critical role in innovation and re-engineering business processes" adds Mr. Wallis. "With these anticipated changes to the market and to organizations' budgets, it is vital that executives understand the value of their investments and the ways in which technology can actually make their firms more efficient in these challenging times."
ABOUT THE IDC RESEARCH
The Impact of Declining Oil Prices on the Canadian ICT Market (IDC#CA0VM15) 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.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,100 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 50 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.
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