COVID-19: the resilience of the tech sector
Few would have predicted what unfolded in the early months of 2020, but the tech sector has shown resilience, suffering far less than the retail, tourism, travel and entertainment sectors.
Our 2020 European Technology Index reveals:
The short-term financial outlook has been impacted for many
Although some high-profile global e-commerce, cloud and communications technology brands have benefitted from the move to remote working and lockdown living, many other tech companies have not been so fortunate.
There is a belief in the sector’s ability to bounce back
The tech sector is robust and fast-moving. When looking at the next 12 months, 52% of respondents predicted either a flat position or revenue growth, and a further 33% expect a more modest decline in the 1% to 10% range, indicating a belief that it won’t be too long before things improve.
Supply is going to be significantly affected in the next 12 months
77% of those taking part are predicting at least a moderate impact on supply.
Steps are being taken to mitigate the impact of COVID-19
Three strategies dominate: refining service and product offerings, revising customer pricing, and undertaking temporary reductions in workforces. It’s positive that just 1% of companies are looking at permanent layoffs, and 1% facing insolvency.
For further content to support you and your organisation navigate the impact of COVID-19 do visit our Coronavirus Resource Center.