Covid-19 and its impact on the IT Sectors
The world’s stability and employment belong to two ends of the same scale. So, when one faces a downfall, the other falls as well. This above-implied stability is oftentimes disrupted by various social and economical issues, such as terrorist attacks, white-collar crimes, or in this context, a worldwide disastrous pandemic. Covid-19 or known by many as the corona virus is the latest in the long-range of infections that have attacked the population. Apart from its impact on the general health and fatality rates, this pandemic has affected the basic lifeline of many by impacting their employment.
As of this writing, there is over 1,763,577 affected case and this number increasing day by day. As a preventive measure, governments have ordered a shut down of major industrial and information technology sectors that can be detrimental for countries both directly and indirectly. Based on long the virus prevails, these sectors will sustain deep damages that cannot be rectified anytime. Such a severe economical crisis can inflict more burden on the general public that depends on monthly and daily wages. Governments and their banks are trying their best to keep the damage minimal, but as a bitter truth, there isn’t much to do.
At a global level, a complete shutdown will produce 50,000 crore GDP every day, so if this situation persists, these losses can hit the sky limit. Along with this, immediate recovery from this shutdown is a tricky task that might become adverse to supply and demand organizations. This situation is also evolving as the infection continues to spread and the shut down isn’t doing any good. In that sense, companies have administrated drastic measures that safeguard the lives of their employees without disrupting their workflow. These measures include paid sick leaves and work from home options.
Information technology and digital marketing sectors which includes the mobile app development companies creating iPhone and android applications as well as IOT solutions have been the driving force for a nation’s advancement in recent times. So, any issue in them would directly reflect in a nation’s economy as well. As of today, all major companies have provided work from options to its employees, although it is beneficial in one way, it can affect their performance and productivity. In contrast, paid sick leaves can lead to a shape decline in revenues, so GDP tends to decrease as well. This will affect their expenditures, spending on salaries, and pension programs that are beneficial for life.
This is a major problem for governments as they cannot force private sectors to pay their employees once their revenues are depleted. So, they have to create compensation policies that address these issues involved in the transfer. Another issue is that major supply and demand chains are affected; it could endanger the fundamental livelihood of many people who depends on these every supply. The failure of any countermeasures will also exacerbate this situation. Such cases would change the very dynamics of the business and could play a huge role in impacting the economical progress that contributes significantly to the future. Economist measured this factors and found that there will be a huge loss of over 25M jobs due to corona virus in the upcoming months. Bank of America already stated a recession has already hit in the country and there will lose of jobs as well as wealth.
So, the banks and governments should rethink their policies to alleviate this suffering that is not limited to only one nation. Their aggressive compensation programs can restore stability among various companies that are in the midst of a disaster. Cash transfer, lowering essential prices, and access to debt services should be reiterated to make it ideal for the current situation. The thrust has to come from them, as every business corner is going downhill. To put it simply, until it adverse pandemic vanishes from the earth’s surface, businesses should adapt to productive measures that will make their progress towards future endeavors a lucrative one.
