Enterprise IT Consulting Contracts, Profit Margins: Under Pressure
Enterprise IT consulting firms, global systems integrators and MSPs are willing to discount their IT services and offer specialized financing in order to retain business with U.S. banks, Reuters reports.
Indeed, Accenture, Tata Consultancy Services, Infosys and Cognizant Technology Solutions are moving aggressively to maintain financial services relationships during and after the coronavirus pandemic, the report says.
Among the special perks being considered, the report says:
- 20% contract discounts;
- payment deferrals of one to four months; and
- potential buyouts of data centers from clientele.
ChannelE2E has not independently confirmed the report.
Meanwhile, in the Small Business MSP Market
Meanwhile, MSPs in the small business sector say their monthly recurring revenues largely stabilized in late April but IT project worked dried up as customers strive to conserve cash.
Thousands of MSPs apparently received PPP (Paycheck Protection Program) loans from the Small Business Administration. But experts are warning MSPs to focus in on fine-tuning their operations and cost structures — rather than maintaining a “business as usual” mindset.
We’ll share more thoughts on that soon.