The IT market's gradual recovery from the 2020 crisis

In the wake of the health crisis, the IT market fell sharply in the spring of 2020, before slowly recovering. However, some segments held up better, or even grew, particularly those linked to teleworking, the cloud and security.

In 2020, the pandemic has had a major impact on corporate IT investment. According to Gartner forecasts, a worldwide drop of 5.4% was expected, while IDC predicted a fall of 2.3%. The Swiss market was no exception to this trend, with the Swico index, which measures suppliers' outlook, dropping by almost 50% in April. Since then, the index has begun a gradual recovery in the shape of a “Swoosh” (wave of the Nike logo). However, it has not returned to its pre-crisis level of below 110 points, a threshold maintained since 2018.

According to MSM Research, the Swiss B2B IT market could record a 4.2% decline over the year as a whole, although this impact remains relatively moderate compared to other sectors.

Impact varies by segment

Although the downturn was widespread, some segments held up better. Worldwide, terminal sales suffered more from the crisis than services and software. In Switzerland, resellers and hardware manufacturers are likely to see a drop in revenues in 2020.

However, some sectors have not only held up better, but have even progressed. This was the case for collaborative equipment and software, which was widely deployed for telecommuting. Similarly, spending on security and IT-as-a-Service continued to grow.

A survey conducted by MSM Research reveals that 58% of CIOs (Chief Information Officers) have increased their cloud spending in response to the pandemic, and 40% plan to increase outsourcing in the coming months.

So, although the IT market has been hit by the crisis, certain trends have enabled some sectors to recover more quickly.

Source : ICTjournal