IDC states that COVID-19 is impacting market growth

The latest forecast for International Data Corporation (IDC) displays that due to the COVID-19, worldwide services market growth has been impacted badly. In April, IDC forecasted that the IT services and business service revenue would fade 1.1% year over year in 2020 because of the adverse effects of coronavirus pandemic. The latest update to the Worldwide Semiannual Services Tracker reveals that the market is fading 2.8% this year. In opposition, the 2021 growth rate has increased somewhat from 1% to 1.4%, reflecting IDC’s optimism for a market rebound.

Shutdowns due to COVID-19 across the world

As per the announcement, the latest forecast is regarding the Economist Intelligence Unit’s May forecast for global GDP in 2020, which will possibly contract by about 4.4%, more than twice as much as the March forecast. Because of May’s GDP forecast, all principal markets are undergoing more inclusive economic slowdowns or more precipitous declines associated with forecasts presented in March.

Research manager with IDC’s Worldwide Semiannual Services Tracker, Lisa Nagamine state that in the past few months of shutdowns across the globe, service providers have widely migrated customer’s core and business operations to ‘work from home’ conditions almost overnight without any hesitance. This additionally elaborates on how flexible and adaptive vendors and buyers could be in the digital age.

Few highlights from IDC

• 2.5% decline year over year in the Americas services markets.
• IDC lowered the US growth forecast -2.7 in 2020.
• IDC additionally tempered the 2020 outlook for distributed services by approximately 1%, presently drop to 1.6%.
• Central and Eastern Europe’s 2020 midterm and long term growth improved whereas the short-term outlook was lowered.
• Africa and the Middle East market will decline by more than 5% in 2020 as larger markets in the sector are also flanked by shutdowns and the downfall in oil prices.
• China market to deliver growth of 2.7% for 2020 as assumed by IDC.