Panic of Covid-19 Across the Globe:
World is not the same anymore, this global pandemic of covid-19 has spread across every corner of the globe. It is spreading as I write this article and it is really sad. However, in this article we are not aiming to cover the talk on the virus, rather on the effects it is having on the tech industry.
The current outbreak of the Coronavirus has caused panic across the globe and has affected a lot of businesses and companies. This comprises,
- A pause in manufacturing.
- Affecting raw materials supply
- Reduction in the demand for products.
- Disrupting the electronics value chain
- Job terminations
Covid-19 is having an enormous effect on firms across all fields, we will like to give a summary of the outcome of this virus and its effects on the world of IT and particularly the Software Development and Testing Industry.
Effects of Covid-19 Virus:
One of the main indicators to analyze the economy are in the terms of stock market. We have observed a 10% decline in the S&P 500.
- The main cause of this is the dependency of the US on China as a provider.
- China leads in the field of technology, where a lot of tablets, smartphones, and many other devices are assembled.
While some companies are observing the peak of financial shares
Influence on Microsoft and Apple Corporations:
Microsoft officials has stated that the Coronavirus is decelerating the manufacturing of its laptops whereas Apple has shut down all his 42 stores all across in China.
Whereas, Apple is producing lower than the prearranged number of sales the first time in the 16 years of its business, typically because of decreasing sales in the market of China & USA.
How Software Development and Testing has Affected?
The industries of software development and Testing are globalized, along with a lot of giant industries having the facilities of R&D in those areas that are under quarantine or most affected.
- Limitations on traveling are the first problem caused by this virus.
- A large number of United States corporations stop their services of software development & no longer travel to the location of service providers for a direct meeting.
We are thankful for modern technology as it allows us to hold our meetings via Zoom or Skype, but it’s still not an effective substitute of an in-person meeting.
Impact on the devices:
Service Providers aren’t Available
Same as many other companies and businesses, software development and testing corporations have their offices shutdown, and unfortunately some are not able to provide us their services due to quarantine and Coronavirus. As compared to physical businesses, software companies are relatively more functional as their employees can work from home.
- If a business has not developed a remote-work strategy by this time, this might cause many functioning issues.
- Software outsourcing corporations are usually ready for such situations, so they would relatively face less problems in shifting people to “work from home”.
Effects on Tech & Smart Phone Industries:
Production of Smartphones is projected to failure and decline 12% year-on-year in this sector, which has made it the lowermost quarter in the last five years.
The chain of supply is labor-intensive, that’s why it is being severely hit by the delay.
Impact on Fiber Optics Corporations:
Wuhan is a big supplier of fiber optics, where the outbreak of coronavirus originated, although the situation is on the brighter side than before but they’ve faced major setbacks yet to cop up.
5G rollout of China can be affected because of a big demand for cables of optical fiber in the next-generation base scenario. Already there is a very big challenge for telecommunication companies to co-op with the situation
Trend Force Reports & Predictions:
Generally, Trend Force expects smart speakers, Laptops, smartwatches, and PCs to see the chief decline in the last forecasts.
- Smartwatches are dropped 16% from previous prospects.
- The sales of wearables are typically higher in the 2nd half of the year when devices like Apple Watch are updated at the end.
Effects on Game Developers:
Video game manufacturers got effected, but the production of next-generation consoles might not get influenced as the outbreak could be put to rest at the end of the quarter.
- The Xbox and PS5 Series would be launched in the season of holidays.
- The present demand for both Xbox and PS4 has dropped due to upcoming technology machines and the Coronavirus outbreak.
Big tech companies all around the globe are playing their part in terms of donations and projects that can impact the world positively.
Practical Next Steps:
Tech leaders will be defined by the three measures of managing this crisis : respond, recover and thrive.
- Understand the supply and demand shocks and develop inventory strategy to neutralize volatility and risk.
- Consider opportunities to grow technology capabilities.
- Implement digitally enabled future of work tools that are affective in business processes and which mimic back-office functions.
- Evaluate the value chain, and plan for the future disruptions to mitigate the crisis in future events.
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