How coronacrisis affected global IT companies – research

The shift to remote working across all industries may bring positive impacts for IT services providers

IT services

How coronacrisis affected global IT companies – research. Source: unsplash.com

According to GlobalData, all IT services firms will face difficulties in 2020 due to coronacrisis. The report highlights that despite most tech, media, and telecoms (TMT) sectors could benefit from COVID-19, there is little optimism around IT services.

The study highlights that clients either postponing or canceling major IT projects will bring short-term pain for IT services companies.

Providing technology services that enable digital transformation is a major area of business for IT services vendors but, in the short-term, this business will disappear as clients look to reduce costs. Any work slated to support this year’s projects will be pushed out. Several vendors taking stock of the impact of COVID-19 have admitted that they cannot yet provide any future guidance on revenues
David Bicknell, Principal Analyst in the Thematic Research Team at GlobalData

The data also found that India recently eased its lockdown, since its IT services vendors are able to function at 50% strength. Although, large players like Tata Consultancy Services (TCS) and Infosys are still in no rush to get their workers back to offices.

We’ve reported that global spending on digital commerce will drop by 14% this year amid lockdowns and decreases in consumer spending. In fact, the study forecasts a fall of $9.7 trillion in spending, compared to $11.2 trillion in 2019. At the same time, the study found that digital commerce spend will recover in 2021.

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