Cloud, security to be priority even if recession hits US: Morgan Stanley

The report suggests limited near-term impact for Indian IT services players, but commentary on FY24 will be crucial

With recessionary clouds hovering over the US, chief information officers are relooking their budget to control costs. In such a scenario, cloud computing, security software and digital transformation will continue to be top priorities for CIOs, said a latest Morgan Stanley report. The report comes amid the likelihood of cuts in data centre build-outs and consulting projects in the event of a worsening macro environment.

According to Morgan Stanley’s 2Q22 CIO survey, expectations for 2022 IT budget growth came in at 4 per cent (vs 4.2 per cent growth expected in 1Q22 and 4.1 per cent growth cited by CIOs