The COVID-19 pandemic has impacted the entire world in a variety of different ways. Every person has been impacted one way or another, some more than others; some lost money, while others lost their lives.
Businesses in particular took a hit as the COVID-19 virus forced people to stay at home and quarantine. People were not spending money on the things they used to, especially when the economy showed signs of crumbling. Almost every business has been impacted by the pandemic, however one practically interesting business to take a look at when it comes to the impact of COVID-19 is the IT industry.
The Impact of the Global Pandemic on the IT Industry
From computer forensics services to network administration services, the IT industry has seen significant changes in recent months. Here are some of the ways that the IT industry has been impacted by the global pandemic.
Operations and Supply Chain
Production has slowed for the technology industry as a result of global supply chain disruption; this is especially an issue for manufacturers that rely on one or two main suppliers. Similarly, with more lockdowns and containment zones throughout the world, there will continue to be shipping and delivery bottlenecks. IT companies can not only not get the things they need, they can also not sell their products or distribute them to other services.
It is also expected that undercapitalized IT companies will face cash-flow challenges and will likely have to subsidize.
Because of issues with operations and supply chains, there has been and will continue to be issued with financial reporting in the IT industry. In recent months, IT companies have had to disclose current and potential future impacts on shareholders while also evaluating current financial reporting requirements and audit impacts.
The customers are an interesting demographic to look at when it comes to who the IT industry has impacted when dealing with COVID-19. Some of the most significant ways that customers have been impacted include:
- Overseas use of the IT industry has slowed
- As people are working remotely, they are at a higher risk of a cyber attack
- Tech support is struggling to keep up with customer needs which have increased with people working from home
- Customers are delaying purchases because their personal finances have been impacted by the uncertain global economy
Like most businesses, there have been staffing concerns for the IT industry. Staff members such as delivery drivers, warehouse workers, and even retail staff, who worked as contractors, are forced to face the harsh reality that they may not be called back to work. IT companies are being forced to let go of contractors and ramp up the responsibilities for full-time employees.
Similarly, because the global pandemic put a slowdown on the recruiting process, the IT industry will likely see a decrease in skilled workers in their future pipelines.
What’s Next For the IT Industry?
The IT industry is by no means going to collapse anytime soon, however, like every other industry, it has definitely seen some changes because of the global pandemic. The IT industry has dealt with detrimental issues before and has since come back stronger, so it’s likely that this will be the reality again; however, those working in the tech industry should still proceed with caution.