Downfall in technology spending due to Covid-19
The COVID-19 pandemic is having a dreadful impact on the organizations at a large-scale. Though the evolution of such a crisis compelled businesses to spend more on software initially to shift towards remote operations. The continuous growth of this deadly coronavirus made business leaders take a pause to rethink their IT spending, causing a decline across industries.
With most of the companies cutting down its IT spending, it is expected to witness a drop by 3-4% globally. Let us have a look at the impact on the various industrial sectors as IT spending declines amid COVID-19 crisis:
- Short-term impact: Continuing with small-scale projects with a focus on seeking operational efficiencies and 5G Stand-Alone (SA) core deployment as COVID-19 has delayed its further trials and testing processes.
- Long-term impact: Enterprise market will drive investment in 5G technology to develop 5G SA core, fiber-optic network.
Industrial & Manufacturing:
- Short-term impact: Factory owners and plant managers will secure their supplies and based on constraints, they move forward with the supply chain and its effect on the suppliers.
- Long-term impact: Conducting an extensive due diligence process to comprehend the risk exposure comprising the operations of the suppliers will be key to mitigate supply chain risks.
Smart Mobility & Automotive Industry:
- Short-term impact: Sales of the new vehicles is adversely affected by this crisis. As most of the automotive companies are exposed to China, the supply chain witnessed a decline due to the spreading of the pandemic.
- Long-term impact: Once the outbreak is subsided, vehicle sales will rise as the vehicle purchase/renewal decisions have been delayed by consumers.
Cloud-based Services Industry:
- Short-term impact: Cancellation of public events/conferences is lowering the revenue for the studios, event management companies. Content houses are embracing work from home initiatives and joining hands with other tech companies to add value to their IT budget.
- Long-term impact: Manufacturing delays in Consumer Electronics space like game consoles, etc. could have negative impact on the stock and its new versions in the upcoming months.
New technology ambitions like Cloud services, Telemedicine, Video conferencing and collaboration, specifically came into play in this current situation of coronavirus. With a surge in demand for these new advanced techniques, it is going to become a mandate post-COVID-19 crisis.
To serve the industries with such unique capabilities, Technology Service Providers (TSP) are leveraging technologies like AI/ML, Big Data, etc. to provide top-notch technology solutions to enterprises according to their requirements.
They are acting as key enablers to enterprises looking for such solutions that can sail them through critical situations:
- IBM’s AI-based platform ‘Watson Assistant for Citizens’ is made available for free on the public cloud for minimum 90 days. It is assisting people in comprehending and responding to the common questions related to COVID-19.
- Innovaccer, a healthcare technology company launched its COVID-19 Management System to assist care providers to examine patients remotely via telehealth offerings.
Draup’s opportunity monitoring team is constantly working to provide key signals to the TSPs that help them present unique value propositions to their clients for successful sales engagement. Our sales intelligence insights assist them in building a strategic list of customized capabilities that they can offer to their prospects and clients at a minimum cost in this distressing situation of coronavirus.