Arvind Krishna, CEO of International Business Machines Corp. (IBM) believes that technology spending will continue to grow despite concerns about rising interest rates, inflation, and labor shortages. He adds that unless there is a catastrophic recession, technology spending is not expected to slow.
He believes that businesses are still investing in technology because it has become both a deflationary force and an essential engine for growth and scale, and that while layoffs are occurring across the tech sector, IBM does not intend to freeze hiring because the labor market’s skills shortage is temporary.
According to Krishna, technology spending is being used to offset inflationary pressures, including capital costs. The worst-case scenario predicts zero GDP growth. Even in that case, he estimates that tech spending will increase by 3% year on year.
“When I talk to CEOs and CIOs around the world, almost none of them are talking about cutting back on technology spending,” Krishna said, adding that one point of concern is whether Western Europe will face a “major energy crisis.”
Krishna also stated that the decline in cryptocurrency values and the implosion of companies such as FTX have had no impact on IBM. “We, as IBM, are not going into blockchain for crypto,” he says, adding that the company is investing in blockchain’s other applications, such as product tracking.
The sources for this piece include an article in CIODive.