covid 19

Impact of COVID 19 on the IT industry

Tue, 04.08.2020
Abidhusain Chidi
Co-Founder and CEO
Impact of COVID 19 on the IT industry

How COVID 19 impacted the IT Business in positive and Negative ways? What are the opportunities for IT Business during this pandemic?

Such questions deserve the right answers.

The world wasn’t prepared for such a deadly virus. The sudden arrival of COVID 19 from the streets of China to different countries killed millions of lives within the first 3 months, later spread across the world which not only impacted China economic but also made a huge difference across the world economy.

COVID even went on to impact trillion dollar industry businesses under a very unstable situation.

The GDP has found its place at the unexpected ratio. This left many employees jobless, stopped productions and distribution which made a major difference in the imports and exports of different countries.

We have never witnessed such a pandemic situation in the last 3 decades. The digital era acquired the world in a very short period time which produced jobs from a few corners of the city to every corner of the street.

Many major companies have faced risks, and succeeded with tougher competition across the market but sustaining at this pandemic situation become the biggest challenge to all the business especially for the start-ups like breaking a leg of a growing baby, There have been many records due to the pandemic situation many start-ups had shut down due to non-business at a pandemic situation.

The Covid-19 Pandemic situation has impacted business in both positive and negative ways.

The positive approach for IT companies resulted in pandemic situations.

Stable Productivity – Thanks to the digital world. The 21st century has witnessed rapid growth in the business with the help of the digital world. The majority of the business is running online and to stabilize the productivity the works are being completed in computers or laptops so any employee can complete the project by supporting remotely. The larger portion of employees can support working from home without affecting productivity which resulted in the companies sustaining at this pandemic situation.

Work From Home – Many companies wanted to introduce permanent working from the home facility but of course, companies were not ready to address the risks. But the pandemic situation helped all the companies to run a real-time experiment on permanent work from a home facility that helps leaders to take decisions on the productivity results in the pandemic situation.

Cost Cutting – The Pandemic situation affected many businesses, to run the business smoothly organizations came up with work from facility till the situation gets in control, resulting in cost-cutting of office work location charges, housekeeping maintenance, Tea – Coffee machines, maintenance staff charges, electricity and Internet charges. The business budget covers 60% of the expenses for the office work location and maintenance charges, The pandemic situation helped to save the majority of the fund of organizations. When we look at the larger organization these expenses may not make many differences since their profits are at the bigger size but at the same time, start-ups need to depend on company budget to save maintenance cost to sustain the market to the match the higher profit.

Video Conference – In the Pandemic situation, all the employees who are working from home can easily host or attend any video conference call sitting at part of the world. If it wasn’t for the video conferencing the working from home would have been much challenging than expected. Video conference helps in tracking daily meetings, to-do tasks, training, presentation, etc.

Recruitment activities found its biggest advantages through video conference tools, many organizations have frozen their hiring activities due to lockdown across the countries. The business has to run taking up new projects with new staff or replacement staff, video conference helping in finding the right talent even if you didn’t meet the person physically. Many companies have hired employees through video conference tools.

Leave Control – The companies biggest challenge is its employee leaves, which affects the productivity of projects and many employes take leaves more than paid leaves which is a challenge to the companies. This pandemic situation has helped to control the leave limitations within the employees.

The Negative approach for IT companies resulted in pandemic situations.

Stability – The startups have faced major drawbacks in the pandemic situation than larger organizations resulting in a lack of projects, lack of budget control. More than raising funds in the pandemic situation sustaining in the COVID situation becomes the biggest challenge for start-ups. Many startups have shutdown itself for not having balanced funds to maintain the business transactions to sustain in the market.

Job Security – Job security is one of the major pillars of any organizations, Employees first preference is job security if he doesn’t see his career future in any company he wouldn’t take the first call to join such organizations. hence creating such trust is the biggest challenge to every organization out there in the market.

Project Confidentiality – The pandemic situation resulted in work from home facility for the majority portion of the employees, since all the employees will work from home there is a major drawback on the project security any of the family member or roommates can easily view the project details when the employee is working it gives the biggest challenge to companies to maintain project security.

Physical meetings – Since there is a wider facility of video conference meetings the touch of -physical meetings has a different approach. Physical meetings have witnessed the preponderance of positive results. With video conference, there is always chance of network issues, video or audio connectivity issues which results in losing interest on the particular meeting.

Working Environment – The biggest and major difference which will also impact productivity, Its a human natural behavior to get adjusted with the new environment but there is a major difference across office workplace or house workplace. The office environment will allow you to concentrate on your work but working at your home environment might result in less productivity. Many employees stay with family. Hence there is always distractions from children or parents for one or the other. Network connectivity challenges and power cut challenges will result in a lack of concentration thus impacts productivity.


The Business market wasn’t prepared to welcome COVID-19 to run the business smoothly, It required many preparations, plans, practical approach, and solution. But sudden arrival in the market left no options to business to such immediate decisions without practical approach within the employees which resulted in both positive and negative practices across the industry.

How about overcome this pandemic and succeed in your business? Our team can make that happen for you. Contact us if you need any support from our side in development and product consulting.