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IT sector braces for a rough ride as ISG predicts delay in client spending

According to ISG, the demand contraction is likely to be felt the most in the second quarter (April-June) period of this year, leading to decline in annual contract value (ACV) of IT services firm

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According to ISG, while January and February saw good growth in overall technology outsourcing contracts, it fell sharply in March with the disease spreading across key geographies of the US and Europe.

Debasis Mohapatra Bengaluru

2 min read Last Updated : Apr 09 2020 | 10:19 PM IST

IT services industry is up for a rough ride this year as global technology research firm ISG sees majority of the global enterprises delaying their spending decisions by up to three months owing to the Covid-19 pandemic.

According to ISG, the demand contraction is likely to be felt the most in the second quarter (April-June) period of this year, leading to decline in annual contract value (ACV) of IT services firm. The sector, however, is expected to see a gradual recovery in the second half of 2020.

“ISG estimates 17 per cent QoQ and 21 per cent YoY

Topics : Coronavirus Indian IT industry Clients

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