The COVID-19 Outbreak has caused major changes in many industries, with the Information Technology (IT) industry being the most important. The negative effects in this situation are greater than the positive effects.
Effect of Lockdown on IT sector:
The biggest weaknesses facing the IT industry today are due to the downturn in the economy, as many companies must ask their employees to work from home (remotely), taking into account public health concerns. For this reason, there is a great loss of opportunity for many companies that have dealers abroad. For example, Apple Inc. is estimated to have experienced a decline of at least 10% in stock due to the lack of iPhone in the market. The parts needed to make the iPhones must come from China and are facing a major crash.
The spread of this deadly virus has caused many tech conferences to be canceled, and this could be a great partnership opportunity for many companies to broaden their horizons. Few of the meetings have been shifted to teleconferences, but this will not have the same access and there will be no networking opportunity as conference attendees will attend the actual conference. There is an estimated $ 1 Billion loss due to cancellations of these major tech conferences.
Some of the companies already have business stability plans, but those may not fully address the fast-moving and strange variables of an outbreak like COVID-19. Typical emergency plans are intended to ensure operational effectiveness following events like natural disasters, cyber incidents and power outages, among others.
Hidden benefits of this epidemic:
Even after all, it is predicted that the IT industry will experience a massive market boom from $ 131 Billion in 2020 to $ 295 in the next five years, compared to many other industries. Increasing demand for software and social media platforms such as Google Hangouts, WhatsApp Video calling, Zoom, and Microsoft Teams is for this industry. All these teleconferencing tools help quarantined persons stay in touch with family members, as well as hold and work conference meetings. The economy will also improve because during these crises people understood the importance of the internet and technology because it helps us stay safe and communicate between doctors and the public.
However, it did not adversely affect the coronavirus. It was seen that it was on the rise with the epidemic.
The rise in online shopping due to the coronavirus epidemic enabled the US-based Amazon to appreciate its shares. American bank JPMorgan stated in its report on the subject that Amazon is not only the most profitable company, but also the best positioned company with the best operational opportunities for such a period.
One of the technology companies that performed above expectations is Microsoft. In the statement made by the company, it was stated that their revenues were affected by the coronavirus in the least possible way. Microsoft announced that its applications called Teams, which enable remote work, reach 75 million users daily.
One of the companies positively affected by the digital transformation created by the coronavirus era was Spotify, the online music listening platform.
In the first quarter, the number of paid subscribers of the company increased to 130 million. This gave the investor the impression that the business model was more resistant to a crisis like the coronavirus. The company’s advertising revenue fell; However, a 22 percent increase in income in general prevented this loss.
One of the companies that performed above expectations due to the increase in the number of subscribers during the coronavirus period is Netflix, the online movie and series viewing platform. The company announced that 15.8 million new subscribers came to the platform in the first three months; this is almost twice the expectations.
How Are IT Teams Preparing for the World After the Pandemic?
As the world tries to keep up with a new reality, IT and management teams responsible for supporting productivity as much as possible by ensuring the integrity of data are trying to act quickly, spending long hours and millions of dollars in order to keep their businesses operational and serve their customers.
In short, while some companies were negatively affected during this period, some companies were positively affected, and among the positively affected companies, we can count the information technology companies. With my corona virus driving us away in normal life, we started to do all our work over the internet. For example, online shopping, e-learning, online communication and so on. Thus, he helped the IT sector grow.
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