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Pandemic stifling software market growth

(Image credit: Image source: Shutterstock/niroworld)

With the coronavirus forcing a vast number of employees to work from home, the software market could have been among the very few to receive a boost as a result of the pandemic.

However, a new report from PwC points to a downturn in the market, which is set to grow only by a fraction of the expected rate.

According to the report, prior to the pandemic, analysts believed the software market would grow anywhere between six and nine percent this year. Now, in the context of seismic economic shifts and widespread business disruption, revised forecasts point to a growth of only one percent.

However, given the circumstances, the software market is considered to have performed strongly, and could be among the few that rebound quickly after coronavirus has subsided.

The report states that “certain segments” will benefit from the accelerated adoption of digital solutions by businesses to enable flexible working, social distancing and automation.

“We also expect the transition of workloads off-premise to accelerate as organisations look to reduce fixed costs and capital expenditure on IT in future,” said PwC.

Despite the optimistic outlook, conservative post-lockdown spending could delay the bounceback.

“Software leaders should consider the risks and opportunities that COVID-19 presents, and will continue to present, such as addressing new use cases or verticals, and how to navigate and address these in the coming years," the report concludes.