It will put incredible strain on the world’s economy, which will be effectively halted for three months or more. It is effectively a stress test on companies’ ability to cope with extreme shocks. COVID-19 will test the financial robustness of companies, and many will not survive this initial phase. Almost all others will suffer significant drop in revenues, says GlobalData, a leading data and analytics company.
GlobalData has published a fully revised report, Tech, Media & Telecom Trends 2020, to reflect and analyse the impact of COVID-19 on 17 separate technology, media and telecom (TMT) sectors and leading companies. 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. The report found that all sectors will be negatively impacted, with IT Services recording the bleakest long-term outlook.
Stuart Ravens, Chief Analyst for Thematic Research at GlobalData, comments: The IT Services industry will be worst hit. The short-term pain it will experience trying to deliver existing projects while its clients are locked down for three months will be replaced by the long-term pain of a massive slowdown in IT projects as companies scale back spending to project 2020 profits