CIOs Face Shortages of Tech Gear as Coronavirus Forces Shipment Delays

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“The lead time to order new IT hardware keeps moving to the right,” IBM CIO Fletcher Previn says.

“The lead time to order new IT hardware keeps moving to the right, whether it’s employee laptops, networking gear, servers or otherwise,” International Business Machines Corp. Chief Information Officer Fletcher Previn said.

Newsletter Sign-up CIO Journal The Morning Download delivers daily insights and news on business technology from the CIO Journal team.Even as manufacturing facilities in China open, they are often dependent on key parts from other regions, said Mikako Kitagawa, a director analyst at research firm Gartner Inc. “About 80% to 90% of laptops are manufactured in China right now. But not all components are manufactured in China. For instance, some components are coming from Vietnam.

It isn’t just laptops that are delayed. “The problems have really expanded to the whole supply chain,” she said.Mark Mullison, CIO of security services provider Allied Universal Corp., saw shipment delays in February and March of the custom near field communication tags and Bluetooth beacons the company uses for one of its security products. It also experienced a delay in the shipment of laptops.

Tirias Research, an analyst firm that evaluates hardware, has been seeing three- to six-week delays on deliveries of hardware, including PCs, servers and networking equipment. “We scrutinize purchases a little closer now to ensure that they are critical for the near term or if they can be deferred, said Stephen Sobotta, CIO at law firm McNees Wallace & Nurick LLC.

 

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Would think most of the hardware is made in China or other Asian nations. So with the Chinese virus shutting down most manufacturing of course there will be shortages, shipments delayed. All manufacturing of IT hardware should not be centered in China or abroad. Diversify sites.

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