Everest Group Projects -6% Growth, Loss of Up to Nearly $50B in Potential Revenue for Global IT Infrastructure Services in 2020 Due to COVID-19
New report describes how pandemic has reshaped enterprise IT priorities, offers strategies for combatting crisis and emerging stronger than before
DALLAS, Aug. 6, 2020 /PRNewswire-PRWeb/ -- Everest Group now predicts the 2020 growth rate of IT infrastructure services market will be as low as -4% to -6%, which represents lost revenues ranging from US$33 billion to nearly $50 billion. In the pre-COVID-19 world, the IT infrastructure services market was slated to grow at a modest rate of 2-3%; however, the pandemic has led to uncertainties across the globe. Recovery of the market will depend on the COVID-19 recovery curve across different countries, which remains uncertain.
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
Going forward, organizations that can rapidly prioritize or quickly re-energize their infrastructure transformation efforts stand the best chance of surviving the crisis and emerging stronger than before. Everest Group urges enterprises to identify relevant infrastructure transformation opportunities across workplace, cloud, network and security.
"A well-planned transformation will not only rescue enterprises in the short-term, but also revitalize them for future growth," said Ashwin Venkatesan, vice president at Everest Group. "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.
"As we emerge from this pandemic, we will enter a world of the 'next normal' rather than 'return to the normal,'" continued Venkatesan. "We believe that COVID-19 will act as an inflection point, giving way to structural changes in the global services industry such as ushering in new models of delivery, enabling enterprises to pivot to 'newer' business models, and increasing the appetite for modernization and digital transformation."
Everest Group provides an in-depth analysis of these new, COVID-19 inspired enterprise priorities in its recently published State of the Market Report on cloud and infrastructure services, "Combatting COVID-19 Through Infrastructure-led Transformation." The report also provides an analysis of the IT services market; IS buyer adoption trends across geographies, industry verticals and revenue sizes; and key trends shaping the cloud and IS market. In addition, the report offers Everest Group's outlook for the market for 2020-2021.
***Download a complimentary abstract of the report.***
IT Infrastructure Services Market Highlights
- The United States takes the lion's share (90%) of the deal volume emanating from North America. The United Kingdom dominates the European deals landscape with typically 30-35% of the volume, followed by Germany at 10-15%. Australia and New Zealand captured 30-35% of the 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.
- 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.
***Read about the full scope and content of the report here***
About Everest Group
Everest Group is a consulting and research firm focused on strategic IT, business services, engineering services, and sourcing. Our clients include leading global enterprises, service providers, and investors. Through our research-informed insights and deep experience, we guide clients in their journeys to achieve heightened operational and financial performance, accelerated value delivery, and high-impact business outcomes. Details and in-depth content are available at http://www.everestgrp.com/.
SOURCE Everest Group
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