COVID-19 will cause long-term pain for IT services sector

The impact of the coronavirus (COVID-19) on the IT services sector will be deep, immediate, and long-lasting. While there is a potential upside in most sectors, there is little optimism for IT services, according to analyst outfit GlobalData.

GlobalData published a fully revised report, ‘Tech, Media & Telecom Trends 2020’, to reflect the impact of COVID-19 on 17 separate TMT sectors.

Stuart Ravens, Chief Analyst Thematic Research at GlobalData, said: “The coronavirus will put incredible strain on the world economy, which will be effectively halted for three months or more. Many companies will not survive this initial phase. For IT services companies asking where new business will come from in 2020, the answer is painfully bleak: there will be none.”The report analysis provides insight into the impact of COVID-19 on leading companies, as well as the impact of COVID-19 across 17 different technology sectors.

It discusses the short- and long-term impacts of COVID-19 on each sector, and ranks on a company-by-company basis the individual impact of COVID-19 alongside nine other themes that affect that sector. All sectors will be negatively impacted.