Global IT, business services market down 7% in Q2
The global IT and business services market dropped seven per cent quarter-on-quarter to $22.8 billion in the April to June period.
According to technology research and advisory firm ISG, the market demand is showing signs of slowing down due to recession fears in the tech industry.
ISG President Steve Hall said, “We have been through an 18-month period of sustained high demand that has pushed the global market to new heights as companies accelerated their digital investments.”
“With fears of a potential recession on the horizon, we saw a slowdown in the second quarter and expect the market to be more volatile in the second half of the year,” he added.
On the other hand, ISG’s report read that the demand is still high as companies continue to embrace cloud computing and leverage technology to improve productivity, lower costs and get closer to customers to drive revenue growth.
Yet the market faces headwinds, he said, including rising interest rates, lingering supply chain issues, a tight labor market, and higher energy prices.
ISG sees continued economic uncertainty impacting the second half of 2022, even as market demand remains high.
Hall added that due to this projection, the negative impact of foreign currency translation, and inflationary concerns, they are lowering their growth forecast for managed services to 3.5% for the year, down from 5.1% last quarter.
