Covid-19 pandemic: IT reworks operations as clients cut discretionary spends

Mumbai: Clients in the automotive and manufacturing verticals have told IT services providers that they will defer discretionary spending amid the Covid-19 pandemic. Instead, they will focus on IT projects that will make their shop floors and operations cost effective and flexible, they have said.

In the automotive segment, projects on connected cars and 5G networks, will be put on the backburner. “The focus is going to shift from giving additional features to the customer to reducing the cost (of making the vehicle) and ensuring supply chain continuity,” said Maneesh Pant, vice-president at Capgemini India.