How will Covid-19 impact the IT industry?
The Covid-19 pandemic continues to cause major upheaval in our country. The sheer level of disruption and chaos caused by this virus will continue to decimate our economy for the next decade. It’s hard to predict what will happen in our industry, but the Government has announced that these changes to our lives will likely result in permanent changes to our economy.
As a computer repair service, we’re seeing huge strides towards remote working, and an increased demand for technological solutions for services rendered. We predict a large volume of new IT start-ups as a result of the large volume of job losses about to hit our industry. We can only assume that a large % of IT professionals will set up their own IT businesses, the unprecedented levels of unemployment will drive the avalanche of new IT start-ups. The market will be flooded.
However, what impact will this have on the IT industry? How will this impact computer repair shops? And other businesses in this sector? At present, the bulk of computer repair shops are based in brick and mortar stores, and with more emphasis on remote working, we can only assume that the high-street will continue to decline at much greater levels when the pandemic is over. Therefore, we will see a decline in computer shops on our high street. We can only assume computer repair shops will turn into remote stations.
For example, we are currently operating in this fashion, we have converted one of our rooms into a computer repair centre during the pandemic. Many of our competitors have done the same, whilst have seized trading indefinitely. Expect a reduction in the number of physical computer repair shops on the high street as footfall continues to decline. Also, many of these computer repair shops and other buildings will simply seize to exist. With a recession in progress, consumers will likely tighten their belts, and the high street will continue to decline as more people work-from-home.
However, IT firms that offer remote software solutions will continue to operate as normal their workload will likely increase as more and more people look to digital services to continue their operations. As with most technology, digital solutions and remote working will see a boom and an increase in demand. However, with such demand drives competition, many international companies and offshore agencies will enter the sphere and offer cheaper prices, the market is already saturated with companies that can offer IT services at a fraction of the price.
The market will flourish, but competition will be fierce. For example, globalisation and outsourcing in India’s IT labour market can offer the same service for a fraction of the price. Digital solutions and remote working have been around for quite some time, they have merely remained dormant and have now been accelerated due to the virus, the progression of the next industrial revolution has pushed ahead as a result of Covid-19.
Overall, it’s difficult to quantify how the virus will impact the IT industry, in general, you could argue that the industry is one of the safest to be in during the pandemic, as many firms will look to IT firms for advice and guidance on how to automate their workplaces. The demand for digital services will increase. In general, the more reliant people are on technology, the more demand the industry receives. As we all work from home, teach our children remotely, engage in digital courses, remote learning, shop online, and generally are more reliant on our technology now more than ever, thus the demand for IT services increases.