How Covid-19 is Affecting the Global IT & Tech Industry
The spread of the Coronavirus known as Covid-19 has caused massive disruption socially as well as economically. The IT & tech sector is currently feeling the impact of the coronavirus, with many companies closing offices and restricting employees from traveling to the other country. The IT & tech experts in some countries are now telling companies not to reopen until March 1st.
The coronavirus has already caused major disruption throughout the tech industry, with companies like Apple, Microsoft, Amazon, Facebook expecting to miss their forecasts. Multitudes of short-term and long-term effects are anticipated, from postponed tech events to IT companies potentially missing a software launch target due to office closures.
IT Production Shortages
IoT production continues now, but the launch of new IoT enabled products could be delayed due to a halt in research and development processes. The tech industry may see a decline in the production of smart wearables, smartphones, smartwatches, Bluetooth earphones, and other devices due to material shortages, and some new software product releases may also be delayed.
The World Health Organization has upgraded the Covid-19 status to a global health emergency, many IT & tech companies pulled out their nominations from the major conferences and events due to safety concerns.
The Mobile World Congress (MWC) conference in Barcelona has been canceled due to coronavirus concerns. Top companies including Amazon, Sony, Ericsson, Nvidia, LG Electronics, which organizes MWC, have canceled the show. Similarly, Huawei was expected to host a developer conference in the month of February, but due to Covid-19, they have also postponed its event until the end of March. Facebook has canceled its F8 developer conference set to take place between May 5 to 6.
Major American, Indian & European IT companies are facing challenges as they take steps to scuffle with the outbreak of the coronavirus in China and the world. The IT companies that have their operations in China have had to take more stringent steps towards the safety of their employees. Several tech companies limit the travel of their employees by following a recommendation by the Centers for Disease Control and Prevention (CDC).
Facebook was the first among the U.S. based employers to follow this step and halt travel in accordance with the CDC guidance. They have suspended nonessential travel by workers to the mainland in China and Italy. The company has also asked employees who have recently traveled to China to work from home.
Microsoft also instructed its employees based in China not to travel and to stay at their home as a safety precaution. Apple’s production relies on its Shenzhen based Chinese factories, so they are warning investors that the supply of their iPhones will be impacted because of Corona’s outbreak.
As of the mid of March, coronavirus cases continued to increase around the world. Although it is not widespread in countries like the U.S and India, it’s a good time to review your IT & tech business continuity plan to ensure your employees have the tools they need to work remotely or for work at home if quarantines become necessary. It is necessary to keep your business running.
Also, companies that depend on partners to provide total IT solutions should keep the communication line open with regard to the supply of hardware and software products that could impact business revenue and budget.
Value of Patience & Isolation Is the New Growth strategy
The uncertain scenarios like Covid-19 though teach industrialists that isolation and patience are the most important virtues. In this situation, isolation and patience mean to let your business grow organically. You should be aware of the fact that there is no short-term approach to smooth this process. When working for the growth of an IT company we’d like to see it grow steadily, which makes us optimize for growth.
The virus has brought new challenges to the IT and Tech industry. In recent days, social media companies have been dealing with the wave of misinformation on their platforms, including conspiracy theories about the spread of the virus, misleading health information, and effect on the tech industry. The longer the outbreak persists, the greater the damage to the tech industry’s bottom line.
In this situation, IT companies should continue to monitor the impact the coronavirus is having on the tech industry to position their business well.
This is an insight on Covid-19 by the team Syncrasy Tech, a leading IT solutions company and PIM solution provider. If you have any queries regarding Covid-19 impact on the global IT & tech industry, feel free to contact us.