How COVID-19 Has Impacted the IT Services Industry

IT Services Industry

The COVID-19 pandemic has already caused much disruption to the business world in general. IT solutions providers and end-users alike have been impacted by these new, unprecedented challenges that come with the pandemic caused due to the coronavirus.

In this post, we explore how the coronavirus impacts an IT services providers’ bottom line, as well as what they can do to mitigate some of the effects of COVID-19 on their business.

Increased spending is expected for IT Solutions like cloud infrastructure services, specialized software, and communication equipment.

These costs can vary according to the different geographical presence of an organization as well. Though these costs are expected to decline over time, IT solutions providers will face challenges in keeping up with demand for their services, resulting in a downturn effect on revenue growth rates. 

Increased Costs

An IT services company would expect increased spending on basic IT services and infrastructure such as cloud storage, virtual desktops, IT security, etc. This increase in spending is expected to be reflected by an increase in revenue for the company.

Another set of costs that comes with complicated implementation processes for companies providing IT support services is increased training requirements to deploy new devices, cloud-based systems, and software programs due to the new functionalities or security requirements.

Demand for IT services is expected to grow faster in developed countries, with growth rates ranging from 5-15%. Organizations in developing economies are expected to have lower demand for IT services than their counterparts in developed countries.

One of the main reasons behind this increase would be the organizations looking to migrate their infrastructure and operate more efficiently and organizations that would like to switch from traditional dial-up connections to broadband connections.

Decreased Revenue

Due to the migration of IT services providers’ customers to cloud-based services, demand for on-premise solutions is expected to decrease over the next couple of years, resulting in lower revenue for IT services providers.

Innovations such as cloud-based services and device management tools are expected to reduce the need for IT support professionals, which would result in a decline in revenue for IT service companies.

However, these effects will vary from one region to another. Developed countries are expected to have higher adoption rates of IT services as compared to their developing counterparts.

Rise in Recruitment

One of the main reasons for increased demand for IT services is IT solutions and communications industry innovations. For instance, companies may wish to invest in unified communication systems such as video conferencing, smart workspaces, etc., which will result in an increased demand for IT support professionals.

Another reason for the rise in recruitment could be due to many employees suffering respiratory problems resulting from COVID-19 infection, which is expected to increase over the next couple of months. This would also lead to companies training their employees on new systems and technologies which may require IT support.

In conclusion, the COVID-19 pandemic has significantly impacted the IT services sector, which is expected to continue over the next couple of months. Organizations are expected to invest more in cloud-based solutions and train their employees to adopt new technologies that would result in higher revenue generation and increased demand for IT support services.

Opportunities remain for IT services companies to increase their revenue generation by providing end-to-end solutions covering both hardware and software and training their employees on new technologies expected to be implemented across the organization.

Organizations without disaster recovery plans need to work with IT service providers to get one implemented.

A disaster recovery plan is important to ensure business continuity. This will ensure that their operations are not hampered by unforeseen circumstances such as a natural disaster. IT service providers need to focus on providing solutions that cover both conventional and next-generation technologies.

Furthermore, IT service providers can provide their customers with a recovery plan that covers critical business functions. This would require them to work closely with the customer’s key decision-makers from an early stage and understand exactly what their end-user requirements are. The steps mentioned above could help IT service providers secure new deals in today’s tough environment.

The need for ever-faster access to data and automation will speed up the deployment of 5G networks.

The 5G network represents the next step in wireless connectivity and will disrupt business IT by improving speed, security, and bandwidth use while lowering costs.

The new networks’ fast speeds will allow for real-time interaction between devices at the edge (i.e., with intelligent sensors) and the cloud (i.e., with storage repositories that can provide data in milliseconds). More importantly, the 5G networks will be able to accommodate an unprecedented number of devices, which means there will be a massive explosion of Internet-connected endpoints—both stationary and mobile.

As a result, IT service providers need to prioritize developing new skills related to 5G implementation. Moreover, they need to focus on making their services more secure and resilient than ever before. As per a study conducted by the Gartner group, infrastructure service providers are expected to play a vital role in accelerating the standardization and commercialization of 5G networks.

This means that such companies, especially those with a deep understanding of cloud computing and information security, will provide 5G-related services that serve their customers’ business objectives.


The COVID-19 pandemic has had a major effect on IT services providers, and this trend is expected to continue over the next couple of months. Thus, such companies should offer end-to-end solutions that cover both conventional and next-generation technologies to increase their revenue generation.

In addition, they need to provide disaster recovery plans to their customers to ensure smooth business operations in unforeseen circumstances. By developing new skills related to 5G implementation, IT service providers can make sure that they are ready for the upcoming changes it will bring about in the business world. This would also allow them to secure their place as leaders in the IT services market during these trying times.