Imagine you are crossing an empty road with a clear mind, earphones plugged and living the moment. A ford model from 1920’s, time travelled out of nowhere with a typical case of hit and run, causing you a temporary injury and killing others. That’s exactly a metaphor of what coronavirus has done.
The Current Situation
Covid-19 has dictated the directions of multiple industries globally, where some are taking advantage of the situation while others are reaping what they sowed.
66% of the businesses across the world experienced some sort of decrease in revenue, where 24% of small businesses and startups are reportedly shut down due to pandemic. However, 16% experienced increase in overall revenue.
The tech industry on the other hand is playing a vital role in combatting the pandemic. Let’s take a look at some of the possible positive and negative effects of covid-19 on IT industry.
The Positive Effects
Applications have exponentially grown during the pandemic period. Since industries need to maintain their profitability. For example, education industry, where applications like Zoom has been effective for distance learning.
Due to closures of education institutes, Zoom has still kept the industries revenue generating.
Other applications like big data or cloud computing used by industries like supply chain management, manufacturing and even brokers to track large chunk of data while employees work from home.
Increase in Digital Marketing Budget:
Since a lot of companies adopted the policy of work from home, they push their branding strategies online. That’s because many spend time online during the pandemic. So, allocating budget on digital marketing witnessed an increasing trend.
A Bazaar voice research shows that 88% global consumers are planning to try out new brands they discover online. Whereas in UK alone, 74% are willing to purchase products online during the pandemic. It’s not only products, but students are even purchasing a cheap dissertation writing service UK online for their academic requirements.
According to Waitrose findings, 77% of UK population are now even purchasing their groceries online.
With this being said, companies are generating huge revenue in IT industry, where 63% of the companies worldwide invested heavily on SEO and PPC.
Quick Implementation of 5G:
5G technology was going to be a next big trend and gossip of the industry, but the pandemic made it an essential story of need.
Since hospitals require speed and uninterrupted connectivity for their increasing patients during the pandemic, machines which process diagnoses in hours, will now process within minutes through the use of 5G connectivity.
Also, someone suffering from suspected covid-19 symptoms, can take advantage of remote consultation from foreign specialist instead of visiting the local hospital, through the use of 5G.
Moreover, 5G is a requirement for companies with large size of employees working from home, as it is capable to handle huge networks online.
So 5G from the IT industry has gained a huge demand due to the pandemic, impacting the IT industry.
Takeover of Automation:
This can be a part of positive effects as well for the IT industry, where robots and machinery has been hired in the place of human labour in manufacturing industry.
The negative effect is, that machines working instead of humans will bring no valuable input to the company. It will just be a loop-hole of monotonous task. Apart from this, too many machines working in a factory can increase the unnecessary expenses of electricity.
Increasing Cost of Technology:
As mentioned above that 5G will be a requirement, the economic factor of demand and supply comes into effect, where increasing demand will automatically lead to increase in price and shortage of supply.
In other words, inflation or price hikes may hit the IT industry and IT products, that were needed for hospitals and other mobile devices, despite the fact of on-going financial crisis.
Distortion of International Partnership:
There have been many pending meetings cancelled due to pandemic, creating huge losses for businesses where even the IT industry was affected and couldn’t help.
There is a parallel effect where any huge loss of business can eventually lead to a huge loss in IT industry, because every business today is somehow related to and needs the support of IT.
There has been an estimated loss of over $1Billion due to such distortion with a parallel impact on the IT industry.
The Lesson of Uncertainty
These were some of the positive and negative effects of covid-19 on the IT industry. It is not wise for businesses to underestimate the power of technology, as IT is an industry capable of combatting the pandemic and helping other businesses to survive as well, as they have proven. Businesses need to invest heavily in IT industries as an investment plan for such unforeseen situations.