Impacts of COVID-19 on the Information

Technology (IT) Industry

August 19, 2020Blog
Covid-19 is one of the worst crisis humankind is facing today. It has been a long time since the last
human disaster, and we are still unsure how long this pandemic will last. Innumerable people are
losing lives around the world every minute, but the world economy has been severely crippled. 

While the impact of Covid-19 has been severe in many advanced countries, including America,
India, UK, Italy, Spain, Russia, France, and Germany, it has also been devastating to the rest of
Europe. Many sectors, especially related to tourism, have been completely devastated. Hotels and
restaurants, aviation, cabs are among the worst affected. 

As per HDFC securities, IT sector revenue will see a cut of 2-7 percent due to a delay in decision
making in the next six months while businesses assess the impact of the virus. Customers expect to
reduce their IT budgets and slow down new initiatives due to the fear of uncertain economic situation
and recession.

The silver lining

While most industries are struggling, as per IBEF, the IT industry’s revenue was estimated at around
US$ 191 billion in FY20, growing at a 7.7 percent year-on-year basis. It is expected to reach US$
350 billion by 2025. The domestic revenue of the IT industry was estimated at US$ 44 billion, and
export revenue was estimated at US$ 147 billion in FY20. 

The main reason for this increase in the economy for this industry is the increased consumption of
software such as Google Meet, Zoom, and Microsoft Teams. All these teleconferencing tools are
widely adopted not only by working parents but also by children as schools are teaching remotely
through these tools. Moreover, these tools have helped people stay in touch with their loved ones
from across the globe in the absence of traveling. These tools have also played an essential role in
telemedicine, helping people stay safe in their homes.

IT has been everywhere in saving lives around the world

India was among the first countries to quickly develop a dedicated mobile app – AarogyaSetu, that
helps in combing the local area for potential Covid-19 patients in the vicinity of the user and alerting
in case it detects a nearby patient. The app is available on both Android and iOS devices. Then
various state governments had created portals to issue E-passes to the needy during the lockdown.

In Australia, the citizens could interact with the government chatbot to remain updated and answer
their questions. This helped curb the spread of misleading information and stop the panic that could
be created in public. In South Korea, the government had launched a working app that helped home-
quarantined employees remain in touch with colleagues in the office to ensure a smooth workflow.

Infinite future in the IT industry 

There are many reasons for the IT industry to gallop at a faster clip than ever before. The world has
seen that the internet has been the savior that kept businesses alive. It helped people stay connected
to their families and friends. It helped companies remain active during these unprecedented times as
employees are working from home. Children are attending school classes remotely. People are
consulting doctors online. 

Then grocery apps helped people order their monthly supplies online. This is an example of how
technology has changed the way we live, work, and play. Online payment apps like Google Pay and
Paytm have made life easier for people. They also help us save money by conveniently making
payments.

The governments across the world, including India, are preponing roll out of 5G technology. This
will further give impetus to telemedicine in India. 5G will also provide a fillip for Smart Cities across
the country. IT is and will remain the most significant enabler in the country’s growth and
development. 

Final words

Sooner than later, the scientific fraternity, along with engineers, will rescue humankind from
COVID-19. But this is certainly not the last pandemic. IT engineers’ needs will become more
pronounced as the world will embrace newer technologies faster than ever. 

If you have aspired for an IT engineering degree, this is the best time to go for it as the coming
decades will see connected homes, appliances, healthcare, vehicles, power grids, and much more.
Not surprisingly, all this will be helmed by the IT engineers. 

If you have engineering in mind, think of MIT School of Engineering, MIT-ADT University is one
of the best destinations to study engineering. Receiving “The Best University Campus” award at
the 10th National Education Excellence Awards 2017 by ASSOCHAM is a testimony of the fact.

At MITSOE, we offer technology programs in the field of micro- specialized areas like Marine
engineering, construction management, Bio-science engineering, Food technology and now in the
field of Aerospace engineering along with regular Computer, Information Technology, Mechanical,
Civil as well as Electronics & Telecommunication.