The technical divisions are the hardest coronavirus

1641901507 The technical divisions are the hardest coronavirus

IT services, application software vendors, and consumer electronics are probably some of the hardest hit technology sectors of COVID-19, according to GlobalData.

In addition to the cost to human life, the
corona-virus

causing great damage to business. With whole countries having to lock in, businesses are losing sales and customers in unprecedented numbers. Few areas of the business world are immune to the downturn, and that includes technology. A new report by GlobalData takes a look at different segments of the tech industry to see how each one could go after the virus.

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Citing COVID-19 as the most important issue affecting the technology industry in 2022, GlobalData said it would place significant pressure on the global economy, which will be largely suspended for at least three months. The virus will test the financial stability of companies and their ability to deal with real shocks. Many companies will not survive this first struggle; others will see a sharp decline in sales.

All 17 sectors in TMT (technology, media, and telecommunications) surveyed by GlobalData will be economically damaged by COVID-19 by 2022, however, some sectors will outperform others.

Image: GlobalData

On the upside, cybersecurity companies are likely to be better off as they are asked to protect the number of remote workers from phishing and malware attacks. Similarly, telecommunications operators are somewhat protected from COVID-19 emergencies because they are required to provide a reliable connection for remote work, home education, and emergency management systems.

Moving towards the less advanced forecasts, the IT infrastructure sector will see short-term cuts to non-critical projects from data centers, but long-term infrastructure projects will not be affected.

Jumping into a negative realm, the IT Services sector is the hardest hit, according to GlobalData. The short-term will test the department’s ability to complete existing projects while customers are in lock-in mode for several months. The long run will bring a major slowdown in IT projects as companies reduce their spending by 2022. With many IT projects likely to be delayed until 2022, application software vendors will be hit by a rough year with little new business before the last quarter. of 2022.

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"Businesses will be charged for costs, and all unnecessary spending will be cut or eliminated," Stuart Ravens, chief subject research analyst for GlobalData, said in a press release. put all deliverable IT projects on shelf until at least 2022. Software vendors need to prepare for a difficult year where very little net new business will be won by the last quarter. the software companies that sell into those businesses that lose the most are at risk from the immediate effects of COVID - 19. These include non - food sales, insurance, travel and tourism, and property. ”

Finally, consumer electronics companies are plagued by short-term and long-term issues caused by the virus. Over the short term, global supply chains are largely shut down. Even as more people living at home want electronic appliances to host, manufacturers will not be able to keep up with the demand. In the long run, as the world appears to be hit by an economic downturn, consumers will be reluctant to spend money on high - end electronics.

Index

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