Coronavirus’ effect on the Information & Technology industry
Thu, 06 May 2021
The Coronavirus pandemic has locked us all inside our homes, forcing us to work in the middle of a health emergency remotely. The information technology industry has emerged as one of the world’s leading employment-providing sectors. The global IT industry remained on track to hit $5.2 trillion marks in 2020 before the Coronavirus pandemic emerged to become the generation’s biggest health emergency, according to a November 2019 report by CompTIA.
Governments from different states have undergone a compulsory lockout of their residents to prevent the disease from spreading. More than a third of the world’s population was under a Coronavirus lockout, Business Insider estimates. The companies from all verticals like Oil & Gas, Real Estate, IT, etc. have suffered as a result of the simultaneous demand and supply shocks.
Here is the information on how COVID-19 has influenced India’s IT industry and tech-startups.
What is the current IT industry trend amidst COVID-19?
The epidemic has contributed to updated growth estimates for global IT spending, Statista said. The current estimates show a 2.7% decline in the global IT sector in 2020 compared to the previous year. This represents a further decline compared to the March 2020 forecasts already adjusted.
Impact on Indian Tech Startups
The COVID-19 epidemic has had a dramatic effect on the manufacturing and retail sectors that require greater manual labor like that. E-commerce websites such as Amazon, eBay India, and Flipkart have shut down their national operations and now only offer important in restricted areas.
More than 220 startups around the world have laid off over 19,660 employees since 11 March, according to studies and data collected by Layoffs.fyi. Over 60 plus startups have laid off their employees in India alone because of losses incurred during this time.
Increase in Remote Working
During the time of this lockdown, people were forced to work from home which showed in-turn the potential held in remote work. While specific industries cannot rely on work from home for their company’s usual functioning, the work-wise lockdown has hardly affected other tech-related and media companies that have a significant amount of work being done online.
Currently, job search sites have seen a rise in the urge during these periods to attain a career from home internship or work. It is predicted that work from home jobs will be most demanded by the nation’s individuals, even after the lockdown is over.
Other impacts due to COVID-19:
The clearest and most immediate business impact of the coronavirus pandemic was a major disruption to supply chains
The spread of the coronavirus caused several of the most important tech conferences to be canceled, likely resulting in numerous missed partnership opportunities
The growing need for remote interactions amid the coronavirus pandemic has highlighted a need for 5G technology, potentially accelerating adoption in the long term
The coronavirus could highlight possible use cases for virtual reality (VR) in enterprises, boosting the technology’s uptake
Stay Healthy and Stay Safe!!!
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