Coronavirus or COVID-19 pandemic has left people anxious and astonished. It seems life has come to a standstill. The businesses are affected throughout the world. A survey shows the Indian economy lost around US$4.5 billion every day during the initial lockdown days. It was considered as following the COVID outbreak. Studies also show that 53% of the business is damaged adversely. India has faced a deep decline in economic growth and the government’s revenue generation. Even the top retailers have urged to open the non-essential markets to bring back the Indian economy on track. People are digging into their savings and investments to survive through this pandemic. This pandemic has left people helpless wandering for their health security as well as their financial security.
It won’t be wrong to say each business faced their own set of issues and the information technology was no different from others.
India’s topnotch IT companies have also faced a significant slowdown in the growth during the upcoming financial year. According to the analysts, web development companies are struggling with the turbulence caused by the pandemic.
There have been a lot of factors that come into consideration for the slowing down of the IT industry during the pandemic.
1. Adverse Effect on the International Chains
Experts said that the top IT companies like TATA Consultancy Services, HCL, Infosys have a great impact on technology usage among the clients around the globe due to lockdown.
According to Kotak institutional equities, the growth of the IT sector has fallen steeply to 3-8% for the next financial year.
As per the current scenario, the cost of supplies from other countries may increase. The recovery of the supply chain will take a long time which would affect globally. Web development companies are also facing problems with their international clients due to the deficiency of services required by them.
India has a good IT international market. But due to less requirement of the services, the effects are worrisome.
2. Money Crisis
There are a lot of small to medium enterprises that require continuous cash flow in order to keep their finances under control. This pandemic crisis has led to deeper disruptions in the financial condition of such companies.
It won’t be wrong to say that if this condition pertains such enterprises won’t be able to survive.
3. Project Execution Is Delayed Due to Travel Restrictions
The execution of the existing projects has been delayed due to restricted travel. This is hurting the IT industry adversely which is not able to ramp up their projects and close the existing deal.
The pandemic hit clients have delayed the cash flow.
From a recent study, it is found that IT firms faced a lot of cancelation of the projects due to restrictions in the air travel and lockdown in various cities and countries to embrace social distancing to handle the pandemic.
4. Affect on Productivity and Performance
The coronavirus has an impact on the productivity and performance of an individual. Employers need to consider certain parameters in order to determine their production plan, their sales plan, etc.
There are a lot of employees who cannot work from home or utilize remote working facilities. In such a scenario overall productivity of the web development firms or IT companies is at risk.
It has become essential to seek per day productivity and performance-related issues which are tied to the COVID outbreak.
5. High Risk of Unemployment and Recession
People who are unable to cater to the need of their work are at a high risk of being fired from the job. New hiring for this financial year is also frozen. It is tough to train people online for their on-role work. There is a salary cut down for already working employees due to the pandemic. Coronavirus recession is one of the major CORONAVIRUS CRASH or GREAT SHUTDOWNS across the globe which arose as an economic result of the ongoing pandemic. An economically strong nation like the UK has gone under recession for the first time after 11 years. Even India is facing its worst recession in the current fiscal.
6. Not Accustomed to Fully Work from Home Scenarios
As effective as it may sound work from home is not cherry on the cake. It has a lot of loopholes in it.
Many companies think they are fully capable of work from home culture. But end up facing a lot of issues like interpersonal training and lack of collaborating skills.
According to a survey, 54% of people across India don’t have resources or good technology to work from home.
There are a lot of people who lack access to certain business tools like zoom, skype, etc.
7. Economic Aspect
According to an analysis, dollar revenues are likely to fall out around three percent as a result of the pandemic. Though a weak dollar gives support to the margins and the revenue of the upcoming financial year. It further added that in the upcoming year the revenue of IT firms can be severely impacted in the initial months.
It is believed that several IT companies give guidance on financial performance and the issues being faced. But amidst the pandemic guidance numbers can be unreliable. “India’s worst recession to date is here,” CRISIL said as it predicted the economy to shrink by 5% in current fiscal because of COVID-19 lockdown. The first quarter will stumble by 25%. About 10% of GDP could be permanently lost.
The pandemic has undoubtedly created chaos in the working of all the sectors in various countries. In India, there are a lot of states which are adversely affected by the pandemic. Karnataka government announced work from home for maximum IT employees. After which Haryana has also advised all the IT and web development companies in Gurgaon to work from home in the wake of coronavirus epidemic being spread.
Google, one of the best companies has moved from voluntary to recommended work from home across all its offices in Asia including India.
The pandemic caused delays in a lot of projects and conferences related to tech and web development. Web development companies in Gurgaon have faced a setback due to restricted finances, work from home facility, financial constraints, productivity, and performance issues. The world is hoping for the COVID-19 vaccine to be introduced so that life comes back on track even professionally.