Monday Morning Impact – May 20

Published On: May 19, 2024Categories: Buzz

IDC Forecasts Slower Growth for Global Telecommunications Services Market

Worldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the IDC) Worldwide Semiannual Telecom Services Tracker, which predicts worldwide spending on Telecom and Pay TV services will increase by 1.4% in 2024, reaching a total of $1,530 billion.

The progress of the global market slowed during the latter half of 2023 as the growth rate recorded for the full year was approximately one percentage point lower than IDC’s previous forecast. This deceleration primarily resulted from slower-than-anticipated progress in the Americas, where a combination of sluggish economic growth, relatively high inflation, and saturated markets created an unfavorable environment for market development. However, in the Europe, Middle East, and Africa (EMEA) region, which faced similar economic issues but where telecom operators were allowed by the regulators to increase their tariffs in line with inflation using a Consumer Price Index (CPI) model, the market grew somewhat faster than expected.

The five-year outlook for the global connectivity services market remains positive, albeit slightly less optimistic than IDC’s previous forecast. Key central banks in the U.S. and Europe have repeatedly postponed decisions to decrease reference interest rates, impacting the potential for a more robust economic recovery. Consequently, the market environment is expected to remain relatively unfavorable for several more years.

Persistent inflation will continue to affect the purchasing power of end users but will also prompt many telcos to implement upward tariff adjustments. However, as inflation will continue to gradually decrease, the positive impact of these future tariff increases should diminish over time. The unstable political situation, fueled by conflicts in Eastern Europe and the Middle East, adds further uncertainty and is likely to dampen growth rates. In the Asia/Pacific region, slower growth can be attributed to the cooling down of the Chinese economy. Nevertheless, positive trends are anticipated due to expected healthy growth in India and other developing markets.

Channel Impact^®
The development of the connectivity services market remains very slow, but the emergence of AI and advanced analytics will likely provide a powerful stimulus for telecom operators to modernize their business operations and improve efficiencies.

CompTIA: Unemployment Rate for Tech Occupations Declines

The national unemployment rate for technology occupations edged downward to 2.8% in April following an unusual spike earlier in the year, according to an analysis of U.S. Bureau of Labor Statistics data by CompTIA, the nonprofit association based in suburban Chicago.

Technology companies added an estimated 4,280 workers in April, according to the CompTIA analysis. Job growth was led by hiring in technology services and software development (+5,600). Cloud infrastructure jobs also increased (+900). Cloud infrastructure and data processing and hosting jobs have seen positive gains in nine of the past 12 months, while positions in tech and software services have increased in 10 of the past 12 months.

Technology occupations throughout the economy fell by 20,000 in April, a decline of 0.3% of the total base of tech occupation employment of 6.4 million

“Employers and job seekers continue to navigate a shifting labor market,” said Tim Herbert, chief research officer at CompTIA. “Skills-first approaches to hiring and talent development are even more important against this backdrop.”

Among metropolitan areas, Houston (TX), Columbus (OH), Sacramento (CA), Dallas (TX) and New York (NY) saw the most notable month-over-month growth in tech job postings, though in each instance the gains were modest. The same is true at the state level, where New Jersey, New York, South Dakota, Tennessee, and Delaware led the list.

Channel Impact^®
The report provides encouraging news amid continuing layoffs in the tech industry.

SADA Systems Rolls Out GenAI Accelerator

SADA, a Los Angeles-based IT consultancy and Google Cloud Premier partner, has launched its new GenAI Journey Accelerator which provides a comprehensive strategy and roadmap to guide businesses through the complexities of AI integration.

The multi-stage GenAI adoption framework begins with the GenAI Workshop, where customers build a core understanding of what is possible with GenAI and the suite of Google Cloud AI products. SADA’s GenAI Journey Accelerator builds on the GenAI Workshop by fostering a deeper understanding of AI’s potential to transform business use cases and drive results.

The tool enables customers to move from use case discovery to use case implementation in weeks, as opposed to months, according to the company which also offers its own services to address challenges associated with AI adoption while evaluating the latest Google Cloud technology advancements, including the Vertex AI platform, Gemini models, Gemini Code Assist, and the latest AI updates to BigQuery.

“As businesses evaluate future competitiveness, a question emerges: How much AI can companies leverage compared to traditional scaling through increased hiring?” said Scott Bergquist, Global Director, AI, Data, and Industry Solutions at SADA. “The answer lies in effectively utilizing AI to drive ROI, and the GenAI Journey Accelerator offers a comprehensive roadmap for organizations to navigate their AI journey with confidence and clarity. We firmly believe that the future of business competitiveness hinges on AI utilization.”

The company is also introducing an online maturity assessment to further support businesses on their AI journey. This will allow organizations to gauge their AI readiness and receive personalized insights to accelerate their path to AI adoption.

Channel Impact^®
Providing a holistic approach to AI adoption, the AI Accelerator is intended to empower organizations to scale AI adoption, addressing a wide range of challenges, from data management to security and governance.

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