COVID-19 – a term that’s making the whole world cringe today. In December 2019, novel coronavirus called SARS-CoV-2, has resulted in the outbreak of a respiratory illness known as COVID-19, which has currently become a global pandemic, killing innumerous people and wrecking homes. Faces hidden behind masks, the hospitals are cramped with patients, the cities are on lockdown, and institutions and workplaces closed. Needless to say, such times are proving hard for every economic sectors, and highly so for the IT sector as well.
According to analysts, as one of the major effects of COVID-19 , there will be a significant impact on the technology sector. There’ll be a striking slowdown in the growth of India’s giant IT sector companies this financial year affecting raw materials supply, disrupting the electronics value chain, and causing an inflationary risk on products. Top software exporters such as 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 globe.
It is feared that Covid-19 will significantly impact the 180-billion dollars Indian IT sector. This impact may be worse than that of the 2008 global financial crisis (GFC), as the former has dented both demand and supply, whereas the latter had affected only demand. Considering the US and Europe, which together accounts for more than two-thirds of India’s IT exports, are among the worst affected geographies by the pandemic, this assumption holds ground. The total direct GDP impact can be nearly $8 trillion, with all the major sectors hit hard, and the economic loss will in turn affect spending on IT by clients. Accenture has already lowered its growth forecast to 3-6% from 6-8% due to business impact from the Covid-19 impact, and Indian IT firms are expected to follow cue.
As a direct impact, large scale unemployment is snatching livelihoods. Analysts had been warning about the prospect of unemployment ever since the country was put under a lockdown on March 25 to arrest the spread of the coronavirus infections, and people got the opportunity of working from home. Centre for Monitoring Indian Economy shows that unemployment shot up to 23.5% in April from 8.7% in March. In the week ended May 3, it jumped to 27.1%- the highest ever. Those that still managed to save their job, have had their salary recklessly slashed; some even getting paid just 30% of the original amount.
Since the it industies form a back bone of our society,their contribution is huge.In today’ s we cant imagine out life without apps ir smartphones or computers.Software and hardware have transformed our life in a way.It is interesting that if IT industry stop sorking completely then it might happen that our nation will stop in no time.Although most of the officials are working online in other workinds they have switched to eork from home but still situation is not that stable and sound.Home and office atmospheres are completely different so it is a big problem in the current scenario.All developments and research works have been stopped due to covid 19.Companies are worrried abot their progress and their employees as well.