The novel Coronavirus has hit the world so hard and is still wreaking havoc across the globe. It not only affects people’s health but also puts the world in recession. The industries have witnessed dramatic impacts that completely transformed their business working patterns. Today, at one end, where companies are rapidly changing and adjusting their work models for surviving in this life-changing crisis.
On the other side, industry leaders keep themselves ready for the next normal phase, but this time the term “normal” is not common anymore. Everything is changed for us; however, the new realities knock our door, but that is filled with complexities, uncertainties and opportunities.
Undoubtedly the world is going to face a vast recession which is expected to be worse than the 2008 financial crisis. But to adapt and grow, companies have to stimulate and become flexible and agile. The effects of COVID-19 not only put the manual sectors in trouble, but it also affects the technological industry to a great extent. In contrast, the virus has put some positive impact like remote working and an active focus on estimating and de-risking the end-to-end value chain system.
Now the majority of tech giants and other IT sectors are keeping the health factors on prior and have made essential changes in their working patterns. Important conferences and events have been cancelled or turned into digital events due to Coronavirus.
According to IDC, – India holds the second-largest position in the software market in Asia/Pacific (excluding Japan and China). If we talk about its market size, then the Indian software market grew by 16% in the second half of 2019 compared to the earlier period.
In 2019, it earned a revenue of USD 6.48 bn. And now, it is projected to grow at 3.8% in 2020 as businesses relook at their IT spends between the Covid-19 pandemic at a CAGR of 7.6% during 2019-2024.
Moreover, the industry professionals expect that due to the sudden increase in remote working and cloud adoption, the demand for technologies such as VPN, encryption, application platforms, security software systems, content workflows, service management software and management applications has risen. Segments such as RPA (robotic process automation) and model-driven application platform are anticipated to witness rapid growth in the spending.
Now if we talk about the upcoming situations of Indian IT firms in the US and Europe market, then it will face a massive business disruption. The reason behind it is the lockdown due to COVID-19. According to market experts’ companies witnesses, a drop of 5-10% in their revenues as clients might cancel or put the projects on hold for the upcoming months.
The most significant example of it is TCS (Tata Consultancy Services)- India’s largest IT service firm. The company has recently announced its first-quarter results in the previous month. Before the final statements, the experts were expecting a revenue drop of 6% due to COVID-19. At the same time, other tech giants like Infosys, HCL Technologies Tech Mahindra and Wipro are foreseeing a fall of 5%, 8%, 9% and 7.5% respectively.
When the sectors like retail, manufacturing and travel-hospitality have seen a massive impact, communications, hi-tech, life sciences, and healthcare have seen slightly better opportunities in this pandemic. However, the overall effects of Coronavirus are harmful to the IT sector in the near-term, but in the medium and long-term, we see immense opportunities for clients as they fast-track.
Impacts of COVID-19 on the IT Hardware/Software Sector
- Launch of the new gadgets deferred due to the supply chain constraints.
- While the unlocking announces in the Asian region, companies are facing severe challenges of keeping their production running.
- When the hardware parts shortage and supply chain process drag down the industry, IT software acts as a saviour of the industry. It emerges as a growth instigator.
- Companies adopting remote-work policies are witnessing increased business demands.
- Security software has become one of the critical and essential elements for remote working. Companies dealing in software securities will expand as cloud tools, and VPN are the most necessary tools for working.
So, these are the critical impacts which every IT firm is witnessing in this pandemic crisis. Moving ahead, let’s talk about- How new software technologies like E-learning portals, video-conferencing portals and delivery services play a role of saviour during this hard time.
Role of e-Learning portals
We all know that the COVID-19 has brought every sector to a halt, in which one is the educational sector. The virus has forced the institutions to shut down their doors to prevent the children from the spread of it. At the same time, it has forced students to switch their mode of learning from brick and mortar classrooms to online virtual classes. Today with the help of these e-learning solutions, students are getting their lessons quickly and efficiently.
This whole new paradigm shift has put the entire education approach amazed. It not only cut down the equality gaps but also introduced the latest innovative solutions for the education sector. However, this change was not easy in a country like India, where almost half of the population is not much advanced. But still, to keep children engaged and active, teachers and schools have left no stone unturned. With these e-learning portals, they try to keep the environment the same as children found in their classrooms.
Features like live lectures, video chatting and messaging with students are making these educational portals saviour. In contrast, the students also find these portals time-saving and innovative. The children say that on these portals, they find great content and the broader availability of mentors.
Now, talking about Video-conferencing portals, then these solutions are becoming saviour for office employees and students who are asked to work from home or study online. From the comfort of their couches, beds, kitchen or recliners, people across the world are firing up video conferences and chats by replacing the in-person business meetings.
The outbreak of COVID-19 has turned the technology and need of the Internet on the head of the people. From job interviews to the virtual parties, people are accepting the new normal life with video conferencing portals.
The global video conferencing industry has received a massive demand during the coronavirus outbreak. Companies are considering these portals an ultimate solution that helps them to connect with their remote workforce, customers, and representatives. Moreover, these solutions help prevent direct contact with people.
According to market experts, the Asia-Pacific has become one of the significant markets in the growth of the video conferencing market during this pandemic state. The prominent market players like Zoom, Google and Jio are also reaching out to the businesses and government institutions to expand their services in the nations. In February 2020, Zoom Inc. developed its video call time limit up to 40 minutes for the particular market in China.
Last but not least, delivery services are also playing a vital role during this Corona pandemic. Before the crisis, the delivery companies were figuring out how to link people with their services. But today, they are not required to think about it. The delivery sector across the globe has witnessed a sudden boom due to the lockdown.
Before the lockdown, delivery services like medicines, groceries, food orders and others have never seen such enormous demands. But, today the big giants like Amazon, Flipkart, Grofers are struggling to cope up with the orders. Undoubtedly, the food and restaurant industry is facing massive changes because of the coronavirus shutdown; in such time, delivery services emerge as a saviour for them.