There’s a misconception that COVID-19 could do wonders for the tech industry. After all, people are forced to stay home, likely using their desktops, laptops, and mobile devices more than ever.
However, studies from Deloitte suggest otherwise. More specifically, it’s projected that enterprise and consumer-based tech products will experience a reduction between -5 and -10 percent. Compare that to the 4.3% of the great recession from 2007 to 2009, and it all seems quite troubling.
Even though work is becoming more remote, IT spending has declined.
This drop is primarily due to businesses and consumers facing losses—and it has resulted in a potential 3% decrease in spending as of April this year. That’s compared to a 5% increase in January 2020.
With all this being said, let’s take a closer look at how the tech industry will look post-pandemic.
Smartphones Upgrades and Software Growth May Have to Wait
The 2010s were quite the decade for smartphone companies. Consumers seemed motivated to purchase the latest and greatest – upgrading whenever the newest versions hit the market. Now, with the state of the economy, expect people to hold onto their “good enough” models until they’re worn out.
Beyond that, software-growth was supposed to be in the double-digits in 2020.
Unfortunately, to deal with the current financial windfall, there have been mass company delays on enterprise upgrades and big projects. Therefore, the growth is not expected to eclipse 1% or 2%.
Working at Home—the Pluses and Minuses
Deloitte discusses how remote work mandates from companies led to a massive demand for laptops and related hardware. While this sounds advantageous at the surface, there wasn’t enough supply to satisfy the influx of consumer needs. Expect this situation to worsen as the pandemic persists.
On a more positive note, remote work presents companies and their employees with an array of new opportunities.
Yes, remote work has always been a facet of the tech industry but now, it’s predominant. This can be a tremendous boost to bottom lines over the long haul. It’s a shift that can lead to savings in travel costs, improved national/international recruitment, and reducing real estate/environmental footprints.
Issues with Cybersecurity
The shift to remote work has opened many organizations and their employees to an array of cyber threats, says Deloitte. An abundance of phishing scams and malware are catching employees off-guard. At the same time, hackers are invading corporate cloud-based services and hardware.
Joining remote workers in these vulnerabilities are healthcare facilities, labs, and government networks—all having seen spikes in cyberattacks throughout COVID-19.
It’s never been more vital for organizations to bolster their cybersecurity.
Deloitte suggests an array of potential solutions for the disruption caused to the tech industry by COVID-19.
Regarding the issues of supply chains unable to meet the demand, they call for transparency. They also suggest migrating to a public cloud (e.g., video conferencing) to cut costs on data and make IT more agile.
Furthermore, they discuss the benefits of adopting edge-intelligent technology to expand automation. This will streamline the evaluation of data to make organizations more efficient and profitable.
One suggestion that spoke to us at US Tech Solutions is the need to hire highly talented remote workers. As an IT recruitment organization, we know how critical it is to ensure that employees have the necessary skills and culture-fit to succeed.
Now is the time to get top talent, as COVID-19 has caused many people who wouldn’t typically be looking for work to be on the hunt for a new job.
Interested in how we can help? Contact us today!