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The Coronavirus and the Information Technology (IT) Sector
The main ways in which coronavirus has affected the IT industry in the US. The negative and positive impacts of the pandemic.
The COVID-19 pandemic has shaken up all industries. The ongoing crisis has affected businesses in many spheres and made them look for new solutions to their issues and change their operating models and approaches to customer relationships. This article is dedicated to the impact of coronavirus on the IT technology market in the US.
We will take a more detailed look at the relations between coronavirus and the development of the information technology industry, problems companies face, and possible ways to solve them.
New opportunities for the tech industry
The pandemic has brought the financial crisis to all business industries. However, when it comes to the impact of coronavirus on the IT sector, some spheres benefited from the pandemic. Companies needed resources and technologies to enable remote working, learning, shopping, and receiving various services. For instance, statistics show that the global revenue of the cloud computing market will grow up to $362 billion in 2022. Cloud services are convenient to use for business operations and offer enhanced data security for enterprises.
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Another growing need for the tech industry is video conferencing platforms and social media apps and websites. For many IT companies in the US, it was the only solution to manage the remote employees.
“The COVID-19 pandemic became a catalyst to the digital transformation of the IT sector. With strict requirements towards social distancing and staying at home, companies looked for new ways to organize their work processes, and apps like Skype, Slack, and Zoom played important roles. They helped remote teams stay in contact and boost workflow effectiveness. It was especially challenging for big corporations, and IT companies are still looking for ways to improve their performance and manage their remote teams effectively.” Andrey Onopriyenko, Chief Technology Officer (CTO) of KeyUA.
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Industry boom
Many companies realized the significance of having an online presence during COVID-19, and the technology industry benefited from companies willing to improve their IT infrastructure. Recent statistics show that improving the information technology infrastructure is the top priority of 50% of enterprises.
Such investments will allow companies to hire more remote workers and manage them more effectively, especially in the eCommerce and retail industries. The market has an increasing demand for eCommerce applications and websites as shopping has become an online activity.
Increase in IT outsourcing
Another phenomenon in the IT industry affected by COVID-19 is the rapid growth of outsourcing services. The pandemic destroyed the main concerns about remote work. Outsourcing became a great opportunity for companies to save on operating expenses (like taxes, maintenance, rent, etc.) and deliver high-quality software products to customers. Of course, cutting finances remains one of the main goals of information technology enterprises that pertain to international corporations and small startups. For instance, IT companies from the US turn to offshore outsourcing to cooperate with remote teams from Eastern European countries to reduce even more costs based on developer hourly rate.
IT outsourcing helps companies become more flexible and adaptable to constant technological innovations and changes, which is essential during the economic crisis caused by the pandemic.
Telehealth
Telehealth is one of the industries that is constantly developing during the COVID-19 crisis. People require healthcare solutions and information. Telehealth provides them with innovative communication technologies like video meetings with doctors, apps for healthcare consultations, etc. Many companies needed healthcare apps and websites to provide high-quality healthcare services and assistance to their clients and developed top-notch products using innovative technologies to boost the user experience and service efficiency. The number of virtual healthcare visits in the US increased to 41%, and the demand for healthcare software development continues to grow.New approaches to client interactions
Social distancing has minimized or eliminated live client interactions in all spheres. So companies had to adjust their marketing and sales strategies to the pandemic situation. IT service providers became more customer-oriented, and their focus in advertising became understanding the customer goals and requirements. Another essential value became stability of the development process and security of the future product. Companies started paying more attention to customer service and negotiating with prospective clients.Need for faster data access
Another opportunity in the IT industry was the increasing demand for 5G (fifth-generation) technologies. Enterprises are focused on network equipment that will ensure stable remote interactions. Turning to the 5G network and adopting 5G technologies became a priority for many US companies. 5G networks enable enhanced communication and open numerous opportunities for technical innovations and economic development and boost the user experience
Apart from adopting the 5G network, companies are also concerned about the user-friendliness of their software. Statistics reveal an increased use of mobile devices for online activities such as education, work, and shopping, so they want to improve their products and make them mobile-friendly.Employee management challenges
The lockdown made companies work remotely, which makes team management more challenging. It became more difficult to control the team operation, especially for inexperienced managers. Such activities as brainstorming or research and development became possible only via online-chats, which decreased most IT teams’ productivity levels. IT companies had to adapt to the new rules by scheduling regular calls to share product updates and solve project issues.
The managers had to find new models and approaches to encourage teams to share their thoughts and concerns and make their remote employees feel comfortable. Such things as chats in messengers, daily online conferences, meetings, and even parties or other online events became an integral part of remote team management to boost the team's motivation and productivity.