Background

The impact of COVID-19 on the global economy has been immediate and severe.

No industry is immune to the contagion – productivity and revenue declines are generally universal.


Predictions for the ICT Industry

Early indications from China’s ICT sector serve as a useful base for predicting the impact of COVID-19 on ICT sectors in other geographies:  


Key Take-outs for the ICT sector from the COVID-19 Crisis

The ICT industry like many others, will experience a decline in revenue as global supply chains and local demand grind to a halt.

In the short-term, the sales mix will shift as demand skews towards cloud services and some software. Demand for hardware will be muted for some time.

End-customer’s businesses that have continued to provide essential services may thrive in the short-term but will experience a tapering off in demand as a prolonged economic recession takes hold.

Recovery in the medium term is expected to be slow as end-customers:

  • Permanently cease operations
  • Reduce operating costs, capex and the size of their workforce
  • Prioritise spend towards business recovery

Mass workforce redundancies and muted consumer spend in the long-term will continue to negatively impact end-customer businesses. It is unlikely that consumer demand will return to pre-COVID-19 levels for several quarters.

It is unlikely that consumer demand will return to pre-COVID-19 levels for several quarters.