Rays of sun are brightening the tech sector’s gloom

May 14, 2020 / IoTTechnology

The news hasn’t improved much lately, and it’s tough to digest a diet of disaster in the media, says Jeremy Cowan. We have to hold our hands up here for sharing tough news in  So, don’t think I’m in denial when I try to lift the spirits a little by sharing some positive news crossing my desk this week. First, however, let’s set the context.

European SITS investment may ‘only’ fall 3%

A report from Munich-based industry analysts, teknowlogy Group this week says that the software and IT services (SITS) market in Western Europe is likely to decline post-pandemic by between 3% and 12% in 2020, based on two scenarios developed by the group. Yes, they call the first scenario, ‘optimistic’.

In it, the group envisages the virus’s peak being successfully managed in three months (by late July), with lockdown measures eased before the end. But in the more pessimistic scenario, teknowlogy Group outlines a six-month period of peak management, meaning most organisations would not return to business as usual until Q4, 2020 or even Q1, 2021.

 

I can hear you now. “Jeremy, if this is you being optimistic I’m out.”

Bear with me, it gets brighter, but to see the light we need to start in the dark.

Christophe Chalons, EVP and chief analyst, says: “We have based our expectations on a number of factors including the speed at which the virus is spreading across different regions, the extent and duration of the lockdown, and how successful government measures are proving to be. But the global nature of the economy means that no country in Europe can avoid the impact on international supply chains and customer demand.”

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