How COVID-19 Is Expected to Fuel IT Services Sector Growth?
The COVID-19 pandemic has pushed us into a whole new world. It brought drastic changes in most sectors, and the IT sector happens to be the major among them. With the social distancing requirements, government-ordered closing of non-essential businesses, and work-from-home mandates, many IT companies were forced to ask their employees to work remotely, keeping the health concerns in mind. Due to this, many organizations have lost some incredible opportunities as many major tech conferences and meetings had to be canceled that could’ve been an excellent partnership opportunity. In fact, an estimated loss of US$ 1 Billion has occurred because of these canceled tech conferences and meetings, according to recent reports.
The Positive Impacts of COVID-19
However, despite all of this, the IT services sector is still expected to see a massive market boom compared to most other industries in the next few years. The primary reason for this sharp increase in this sector is the increased demand for software and social networking platforms like Zoom, Google Hangouts, Microsoft Teams, and WhatsApp Video Call. Such teleconferencing tools not only help people conduct conference meetings and work simultaneously but also help the quarantined people stay in touch with their family and friends. Moreover, as the internet and technology are helping us navigate these challenging times, communicate with the doctors, and stay safe, people have realized their importance in our lives. And this is yet another reason why the IT industry is expected to blossom in the near future.
Emerging Opportunities in the IT Industry
A lot of countries around the world that are facing major lockdowns have invested in smart solutions. Governments have launched smart apps and chatbots to keep the citizens updated with the current pandemic situation and control the spread of false information. Undoubtedly this ongoing pandemic has been extremely hard on all of us, but surprisingly there have been some positive effects as well. Numerous opportunities emerged in the IT industry because of this crisis, such as the rising need for the 5G technology worldwide. Due to COVID-19, this has become one of the top priorities for many companies as it will help boost connections that support the brief remote interactions.
As per a report by Fitch Ratings, the IT services sector in India is likely to “resume high single-digit revenue growth in 2021-2022 on higher demand for digital transformation.” The COVID-19 impact will most probably only be short-term and moderate, as people are focusing on the digital transformation of their business, shifting their services and work platforms online, and minimizing their overall spend on legacy services. Many organizations have reported some robust deal wins that should support the industry growth in 2021-2022, in spite of the revenue decline last year.
The Growth of the Indian IT Services Sector
The Indian IT services sector is expected to continue to cash in on its low-cost operations and retain its solid foothold in the global IT industry. However, as the industry primarily serves Europe and US-based clients, it will continue to be driven by export. After a somewhat flat year in 2020, Fitch Ratings has predicted that the Indian IT sector’s revenue will increase by a high single-digit percentage during 2021-2022, defying the COVID-19 pandemic.
Being one of the top IT companies in Delhi, we have faced the impacts of this ongoing crisis very closely. However, we cannot deny some of its positive effects as well. The pandemic has made people understand the crucial role the internet and technology play in our daily lives. From pushing everyone to embrace digital transformation to expediting digital IT spends, this pandemic has accelerated the growth of the digital economy. With more and more companies investing in software and IT solutions to help their customers as well as grow their business, COVID-19 has opened numerous doors of opportunities for IT companies in India and the world.
Wrapping It Up
The COVID-19 pandemic has not only transformed the way we live but also how we do business. From governments to companies to people, everyone is adopting smart solutions to make things easier for themselves and others around them. While this crisis has terribly affected most industries, compared to many other sectors, the IT sector is expected to grow, defying the pandemic. Businesses have increasingly started investing in software tool and IT solutions, which clearly translates to the growth of the global IT industry. We are one of the best IT companies in Delhi, offering services like software development, application development, ERP software solutions, branding services, eCommerce solutions, digital marketing, and much more!