The Russian invasion of Ukraine and the resulting diplomatic and economic response have led to a critical turning point for Europe and the world.
“The evolving geopolitical scenario will undoubtedly affect global ICT demand in the coming months and years,” says Andrea Siviero, associate research director, European Customer Insights & Analysis at IDC. “A new IDC Global CIO Quick Pulse Survey found that more than half the respondents are reassessing their tech spending plans for 2022, with 10% expecting strong adjustments to their ICT investment plans.
* Energy Prices and Inflationary Pressure: Tensions over the conflict in Ukraine will have wide ranging consequences on both energy prices and security of supply, particularly for certain European countries where cascading effects on price indices are already being felt. Most countries will need to quickly reassess their near-term energy plans while accelerating efforts to reduce their dependence on carbon-based energy sources.
* Supply Chain Dynamics: Exports of finished products and technology components to Russia will be significantly affected by the sanctions, but the impact to Western companies will relatively small given the size of the market. Imports of tech materials from Russia and Ukraine will also be affected, particularly in the semiconductor sector where supplies of neon gas, palladium, and C4F6 used in chip manufacturing will be greatly reduced.