Recessions test the strength of companies and consumers and separate the companies with strong business models from those with just concepts and weak business. The current Covid – 19 pandemic is adversely impacting the global economy, with expected record unemployment, business disruption, and significant contraction of global GDP growth, which will inevitably impact all business sectors and overall business confidence in the medium to long-run.
Nonetheless, the Indian economy, enterprises, and consumers are expected to display relative economic strength (as compared with global peers) in the ensuing recession. Just as many of the Indian industries, including IT, FMCG, Industrials, and Domestic Banking rebounded after the 2008-2009 financial crisis, the Indian industries are expected to weather the current recession and rebound once the downturn ends.
However, different sectors have different conditions – including types of businesses, geographies, and consumers served, debt load, capital and operation costs, and supply and demand for human resources. Sectors thus experience varying impacts of any recession on their respective businesses (with moderate to severe revenue impact and downsizing) and correspondingly, are expected to rebound from the recession at different times and with varying degrees of growth and business confidence.
In this report, AIMResearch analyses the impact of the recession (caused by the Covid – 19 epidemic) on the Indian Analytics domain across industries and sectors. Here again, the impact on a given industry and the corresponding recovery will determine the impact of the recession on the particular analytics domain and the recovery of the domain.
This report should serve as a guide for enterprises to understand the impact of the recession on the Analytics domain depending on the demand outlook of the sector served and inherent conditions; and as a study of the corresponding recovery of the analytics domain across the respective sectors.
There are many factors considered while evaluating the impact of a recession on the Indian Analytics industry and market. The major factor is the contraction in demand for analytics services. This contraction would originate from the core business of the enterprise.
Analytics serves as a support or cost function across many organizations, such as consumer goods firms and media firms. In such firms, analytics serves to identify customer profiles, segment markets, and boost operations. Across firms that provide analytics as a service, analytics directly impacts the business of the organization.