IT infrastructure services market will decrease 4-6 percent, which represents lost revenues ranging from $33 billion to nearly $50 billion, in 2020.
In the pre-Covid-19 world, the IT infrastructure services market was slated to grow at 2-3 percent, Everest Group said.
Recovery of the IT infrastructure services market will depend on the Covid-19 recovery curve across different countries, which remains uncertain.
Major vendors in IT infrastructure services market include Accenture, Cognizant, Atos, Wipro, Tata Consultancy Services (TCS), Infosys, HCL Technologies, Capgemini, IBM, DXC Technology, Tech Mahindra, UST Global, Mphasis, NTT Data, among others.
The severe demand slump being experienced in the IT services industry is reflective of the strains the Covid-19 pandemic has placed upon enterprises, including:
# Demand reduction
# Supply chain disruption
# Business and service continuity challenges
# Cybersecurity risks
The report said organizations that can prioritize or quickly re-energize their infrastructure transformation efforts stand the best chance of surviving the crisis and emerging stronger than before.
“While infrastructure will play a key role in rescuing enterprises from this crisis, they will have to take a holistic view and focus on evolving the services delivery model, seek efficiency and optimization measures, push toward modernization and digitalization, pivot to new business models, and invest in talent of the future,” Ashwin Venkatesan, vice president at Everest Group, said.
The United States has 90 percent of the IT infrastructure services deal volume emanating from North America.
The United Kingdom dominates the European deals landscape with typically 30-35 percent of the volume.
Germany has 10-15 percent of IT infrastructure services deal volume.
Australia and New Zealand captured 30-35 percent of the IT infrastructure services deals in the Asia Pacific region.
Banking, Financial Services and Insurance continues to be the early adopter of technology innovation, but this market segment has witnessed growth in recent times primarily due to regulatory pressures.
The research report on IT infrastructure services market said Covid-19 has accelerated the modernization journey of enterprises to cloud.
Work from home has become the next normal and will be an integral part of the workplace of the future.
Networks are finally getting due recognition, and software-defined networking is driving growth.