Effect of COVID-19 on IT & Software Companies in India
The IT industry has been facing a crisis due to the increasing influence of Coronavirus Pandemic, with organizations shutting workplaces. The IT industry has been India’s assets in our country’s economic growth story for the past two years. The industry has provided world recognition for Indian youth’s technology and entrepreneurial capabilities and immensely committed to improving India’s international image and stature. So many IT companies in India took a step to make life easier for those who are required to work from home, giving away advanced streaming tools to avoid further spread of the deadly virus.
Worth of industry now
The IT industry not only erns 190+ billion in annual revenue but also has generated numerous direct and indirect jobs. The industry has competed for an important role in realizing the Indian middle-class dream of prosperity and aspiration careers. Indian IT industry has faced serval difficulties since its evolution starting from the global finical recession and then increased protectionism and anti-outsourcing waves, however every time the industry had come out stronger by adopting creative counter-strategies And the Coronavirus is no difference IT companies again find a way to maintain Indian Economic in this situation.
Problems faced in this time
India's IT sector has never seen challenging times that it is witnessing now due to the COVID-19 impact. India’s giant IT services companies will see a significant slowdown in growth during this financial year as they grapple with the upheaval wrought by the coronavirus attack.
Top software exporters – Tata Consultancy Services, Infosys, and HCL Technologies will be impacted by the reduced technology spending by clients in the US and Europe following lockdowns across the World. In the near future IT companies could feel the heat of pricing pressure, revenue loss due to lockdown in India and many countries Worldwide.
The effect due to Market shut down in the USA and Europe
The Indian IT sector gets most of its revenue from the US and European markets. It is feared that the effect of COVID-19 will significantly affect the $180-billion Indian IT sector, and the result may be worse than that of the 2008 global financial crisis.
The fear is justified, considering the US and Europe, which together consider for more than two-thirds of India’s IT exports, are among the worst affected geographies by the coronavirus attack. Clients could significantly reduce their IT spending this year.
IT companies have "gone through" the Asian crisis, Y2K, and the 2008 global meltdown when many of the customers were affected. Nothing comes as a comparable thing to what is happening now. This is the most serious one impact is going to be phenomenal because while essentially IT Industry has proved its capability but we have to ensure that global businesses resume, and it's going to take Some time and therefore it’s a very challenging time.
The demand for Online Presence for brands has Increased
The coronavirus outbreak has presented businesses with unprecedented challenges. For some small businesses, establishing an online presence wasn’t a top priority, but recent shifts have forced business owners to make quick changes to their operations and strategies.
Customers may no longer resist ‘Work from Home’ for offshore as they have seen how seamlessly it has worked in India during the recent coronavirus attack.
Customers may accelerate their journey towards Online Presence to reduce human touchpoints. This should create huge business opportunities for Indian IT companies.
Effects on Start-ups in India
As a result of some of the preventive measures taken by governments worldwide to control the pandemic, small businesses and start-ups have come out to be one the most vulnerable groups that have been directly affected by these measures. The impact of coronavirus cases is hitting start-ups, companies that are in their early phases of growth, hard. As a start-up, 30 days shutdown means cash flow for those days is gone. There are many start-ups and small businesses that are facing major challenges due to coronavirus crisis impacts. Many companies have asked their employees to work from home. It’s a good sign that the companies are not giving up on the IT sector.