IT firms to face heat as global enterprises put digital projects on hold

As enterprises globally apply the brakes on many ambitious digital projects, IT services companies, which derive a higher share of their revenues from digital services, are set to face the heat. This is also expected to impact the deal pipeline of these companies in the second half of this financial year.
 
Digital initiatives of several global enterprises have been cancelled or postponed in the last couple of months as the Covid-19 crisis has prompted firms to halt non-revenue-generating ventures. “There is acceleration in shutting down of digital initiatives of enterprises that are either loss-making or are not core operations