How COVID-19 has affected Tech and Software Industry worldwide

Global Pandemic

As governments all over the world make significant interventions in response to the Corona-virus, tech and other industries are rapidly adjusting to the changing needs of their people, their customers and suppliers, while tackling the sharp financial and operational challenges.

COVID-19 has forced tech companies to rapidly operate in new ways, and various working methodologies are being tested as never before.

The COVID-19 pandemic has forever changed our perspectives and experiences. With COVID-19 disrupting most of the business sectors, major IT and Tech giants are committed to giving utmost priority to public health and have made significant changes in the employee working styles.

Major conferences and events like Facebook’s F8, Google I/O, the Geneva Motor Show, and the Mobile World Congress have been called off due to the outbreak . According to a report, the economic loss resulting from the cancellation of these events is estimated at $1 billion.

One of the biggest stories of the moment is the major hit delivered to the tech sector that has behemoths like Apple, Google and Amazon grappling with unexpected challenges to business continuity.

In India, analysts believe that the $190 billion IT services and BPO sector will lower non-compulsory spending, posing a challenge to the industry for at least a couple of quarters. Faced with uncertainty around when the pandemic will end, the pace of recovery is expected to be a long and painful one for the sector.

Broken Global Chain

Global tech industries— including India — are heavily dependent on Chinese vendors for the design and manufacture of components and systems, COVID-19 has caused a major disruption to the global supply chain. The closure of Chinese factories and supply networks has significantly affected many companies. as they rely on China for its immense manufacturing capabilities in consumer electronics, smartphones, microelectronic chips and other technology products. For instance, Foxconn, Apple’s iPhone manufacturer, was forced to suspend assembly-line production in response to the Corona-virus outbreak. Despite that, Apple proceeded to ‘cautiously’ resume production, it warned that it does not expect to meet its own revenue guidance for the second quarter.

Tech companies might also localize their supply chains, starting a new era in handling supply-chain risks.

Enhanced Cyber-security

With more and more people working from home, a new challenge arises in the in the tech industry as cyber-security breaches and malware attacks rise during this pandemic. Cyber-criminals started targeting the global workforce with phishing emails containing malicious software, attacking servers with ransomware.This had urged IT teams to reassess their security measures and ensure that their company’s firewall, antivirus protection and other security features that demand authentication are in place to mitigate malware risks.

Innovative opportunities on the rise

Innovators around the world are leveraging disruptive technologies to find innovative, unique solutions to improve the management of the pandemic and contain further outbreak. Several startups, too, have deployed drones and AI-based robots for high-risk tasks, such as patrolling public places, disinfecting rooms and communicating with infected patients. Going forward, more such innovations will be deployed in the future to support during a large scale health crisis such as COVID-19.

Corona-virus Expected to Impact Tech Industry Shipments

Chinese market research company TrendForce expects global smartphone production in the first quarter to be 10 percent lower than originally expected due to the COVID-19 epidemic. The chart below shows all industries are expected to suffer double-digit hits on unit shipments this quarter, with TV shipments expected to be 4.5 percent lower than forecast before the outbreak.

Impact of the coronavirus (COVID-19) on tech conferences 2020

Based on a selection of 63 tech-related conferences scheduled to take place in 2020, 44 events have either been modified to take place entirely online, or postponed to a later date in response to the outbreak of the coronavirus (COVID-19).

Several big-name conferences are among the cancellations, including the Mobile World Congress Barcelona, Facebook F8 and Google I/O.

The Chart below gives a pictorial representation of the the events.

Due to the novel Corona-virus, production and shipment of key technology products are also effected. Below is the chart that depicts the forecast of the shipments.

Financial contribution towards the novel Corona-virus

The COVID-19 pandemic has had a global impact on many different industries. Over the few months , many of the leading technology companies have announced financial contributions in support of resolving the COVID-19 worldwide crisis.

A Setback for 5G

The shift to next-generation 5G networks in cities and towns across the world will be delayed.The supply chain of telecom gear, largely based in China, has been disrupted due to COVID-19. Equipment vendors such as Huawei, Ericsson and Nokia will see much lower sales than were projected just months ago.

The development of global standards for 5G have been halted, freezing an update vital for industrial uses, such as connecting thousands of sensors and building private cellular networks that can be used to connect different users and IOT devices.

Biometrics Will Go Touchless

Contact-free facial and iris detection will see a surge in interest. Many companies relies heavily on fingerprints for its identification system, will soon be facing the grim reality of a pandemic.

Drone Delivery sees a Lift

Drones can be a vital resource in a pandemic or similar disruption. China has already experimented with using drones during Corona-virus for shipping medicine, disinfecting public areas and delivering food. Primarily the focus will be on lifesaving uses, such as delivering medicine and virus test kits. Then Drones will be sold for surveillance and monitoring by police. Many states patrols in India have already started using drones for Patrolling.

The Future

At this critical time, we should protect ourselves from the novel Virus, and Pray to the Almighty that this Pandemic should come to an end soon and let’s hope that we return to our normal life soon.

-Kuttan