Though manufacturing companies are facing losses and production almost reduced to zero during the pandemic, IT companies have not escaped from the unpleasant impact of COVID-19 across the globe. Forget about the small IT companies, tech giants like Facebook, Microsoft is also facing problems. There was a severe disruption in the electronic value chain; as a result, we saw an inflationary risk on products. This Accelerated focus on remote working and evaluation of end-to-end value chain and de-risking processes.
Technology sectors are broadly classified into four sub-sectors primarily.
b. IT services.
d. Network equipment.
Let us discuss the impact of COVID-19 on IT services.
A forecast on IT spending indicates the demand for cloud infrastructure, telecom services, communication equipment. The reason being the educational systems move to online courses, and employees start to work from home. E.g., the download of video conferencing platforms like ZOOM, Webex, and Google classrooms have increased exponentially between April to June 2020. AS the competition is very high, companies are trying to give the best services. Google Meet recently launched a noise cancellation feature for effortless communication.
The focus on communication and network equipment has risen because every company needs faster access to data. This creates a competition among them to adopt a 5G network or at least start working towards it.
Tech stack is missing in most organizations for a reliable BCP (Business -continuity plan). The role of IT departments in BCPs will be more as companies promote remote work more. Companies like Facebook, Twitter, and Quora have made some employees permanent work from employees. And search engine giant Google announced its WFH of employees would continue till June 2021. So the assisting companies who provide a resilient and flexible network, disaster recovery systems, IT security, flexible systems also play roles. That’s why these are some vital resources an IT company can have.
These are the requirements, and IT companies will only be able to achieve this if they have characteristics like Leadership, Resilience, Trust, Adaptive capacity. Another IT company Microsoft has three pillars i.e., culture, capability, and technology. But the disruption in culture and capability, they have to adopt different things to strengthen their technology. In this hard time, a company must have to retain the trust of shareholders, the trust of its clients. Resilience will help the organization adopt a different mindset, invest in building trust factors, and navigate the uncertainties. And combined, they will lead to a foundation for post-COVID future. Trust is actionable and an exchange of value. The value highlights the interactions, relationship between two parties. COVID-19 has raised the sensitivity of the stakeholders across four dimensions, i.e., digital, emotional, physical and financial. These are the best opportunities to build or lose a bond. Adaptivity is another excellent resource. Nobody has ever imagined work from home. After initially struggling, they started producing the same output. And now, they are okay with the decision to work from home for all IT employees until December 2020. And the leadership skills which will help the company not only to respond but also to recover.
With the essential skills and attitude, companies will evaluate the value chain properly and find a way to mitigate disruptions in future events. They can adopt M&A opportunities to grow technological capabilities. Additionally, they can develop inventory strategies to mitigate risks, but before that, they must understand the demand-supply side shocks. They can build a digitally-enabled future workplace to deal with any unfamiliar situations.