The virus started from Wuhan, China in now spread over the whole world. The widespread of Covid-19, made the WHO (World Health Organisation) declared it a pandemic. China is one of the biggest software development hubs. The industry IT solutions and the software industry got a sudden jolt due to pandemic. Due to the deeply interconnected market, the global IT and web application development industry felt the tremors from Covid-19 breakdown. Now when the whole world is captured in COVID and the major areas of developed industries are locked down, preventive health measures are a greater priority than the custom software development. Everything has its pros and cons.
China, one of the biggest software development service hubs in the world, has been identified as the geographical source of the virus and the country with the largest population of COVID-19 patients. Here are the ways, the pandemic hitting hard to the software industry:
Global technical supplies are canceled
Most of the biggest technology brands in the world are dependent on Chinese manufacturing units. After the sudden outbreak of the pandemic, many factories and the technical units are running the limited operations. Few of them have even stopped the production and temporarily closed their units. This is the reason why the technology industry is facing the shortage of materials and delay in shipping is making it worse. According to the research by Chinese market research companies, the Coronavirus is likely to make a considerable impact with a steep low of 10.1% on the technical production in 2020.
According to the survey, the production for smartphones is likely t the production of smartphones is projected to be -10.4% lower.
This is also the reason why 5G iPhone and iPhone SE2 is keeping its customers waiting for long. The company also kept its stores closed until March 27, which made a huge shift in demand and the great loss to the market. However, the online stores continued with the work, but still, it caused the Apple loss of billion-dollar loss. Spreading the reach to communication and telecom industry IT solutions industry that also work with the software industry, the production of the smartwatch, smart speaker, TVs, and video games are also affected.
In quarter first, the delay in Smartphone shipping causes the loss of 10.4%, Notebooks 12.63%, and video game consoled saw a decline of 10.1%.
Cancellation of tech conferences
For stopping the pandemic, most of the countries have imposed the lockdown and strictly banned the group gathering and the social events. Also, the travels are banned which in turn canceled the events.
The sudden cancellation of the events in the software development service industry has also made the tech giants cancel the events around the globe.
The industry leader Apple has postponed the date of its famous conference. Apple’s worldwide developer conference is held to connect millions of software developers and the event will take place now in June.
The conference, which was going to be held in May, has now canceled its event to be held in May.
Microsoft the industry pioneer has also shifted its developer’s meet program. Microsoft’s conference, which allows the developer to meet and share the latest technologies, is also postponed to May 19-21.
Adobe’s summit on products and trend, which pulls the industry forward with the products and trends, and transform the industry, is now held on March 31.
Nothing is more important than health, and therefore the conference is decided to be held online.
Need for B2B tech in on rising
With the increase in the number of online conferences, digital communication through industry IT solutions is on the rise. Not only companies and the events the colleges, institutions, and schools are closed and switching to the online mode. Alongside this, the largest tech companies are facing disruption in the supply chains and losing their respective profits. B2B companies are offering online meetings and conferences. This is also giving a boost to revenue for custom software development companies.
The online video conferencing services are earning a huge income with the adoption of these services. The world leader in enterprise video communication, Zoom enjoyed the net income of $15.3 million in the fourth quarter according to the financial reports. Looking at the numbers from last year, which was $1. Million, the current year income is surprisingly overwhelming.
Work from home culture
According to the local government orders, the companies have shifted their office work to the remote. The current widespread of Coronavirus and increase in death tolls has made this a necessity. According to Worldometers, the current number of infected due to the Coronavirus has raised to 3 million with more than two hundred thousand death tolls.
Leading the industry, Google, Microsoft, and Apple instructed the employees to work from home. Twitter urged 5000 employees in Hongkong, South Korea, and Japan to work from home. Today every company is now taking the work from home and SaaS software development is boon for work from home culture.
Employees fear to lose their jobs
The market is going down and the outbreak has influenced the people emotionally. People are not only fearful of being infected but also worried about the fear of losing jobs. The majority of people are working from home and this does not give them certainty. On the survey conducted by Blind, around 53.8 percent of employees are concerned about their jobs.
It will not be a superlative if the companies will now switch from native app development to progressive web app development for cutting the cost.
Streaming companies are seeing an increase in engagement
Coronavirus has affected small and large industries. People are locked down at their homes. They are quarantined and isolated, which makes them bored. This has increased the demand for entertainment and video streaming. The gaming industry is reaping the benefits and video streaming is getting high interest because of the web series.
The subset of the technical industry, such as the streaming and gaming industry, is seeing the high rise in demand. Some are taking interesting steps for capitalizing on the trend and stabilize the demand. Whatever may be the future, but right now, the entertainment and gaming industry is in high profit.
The gaming networks are also struggling to manage the huge influx of users. The servers are being made potential. The adult streaming service Pornhub saw the rise in traffic by 11.6% in March 2 week, which is further rising. Also, web streaming noted a rise of 57 percent in Italy alone.
As the local governments are making their huge efforts for saving their population from the COVID outbreak. All offices, institutions, and meetings are stopped. The authority is tightening the responsive measures to save from the Covid19, and the IT industry is taking the innovative efforts for coping with the challenges in web application development. The hardware brands are facing the delay in shipping, B2B tech platforms are spoiled, Streaming and gaming services are increasingly in demand, and online video streaming apps are highly respected. Therefore, there is a mixed effect over the software industry and the industry is moving forward with preventive health measures.