Future Of IT Industry After COVID-19 – Critical Impacts
The effects of COVID-19 are felt around the world and are having a significant impact on the technology sector. From impacts on raw materials supply to disruption to the electronics value chain, to inflationary risk on products. From a positive perspective, the disruption has caused an acceleration of remote working, and a rapid focus on evaluating and de-risking the end-to-end value chain. In addition, there may be potential carbon emission reductions, which could result in a renewed focus on sustainability practices.
Potential long-term impact on technology sub-sectors
- The launch of new smartphones may be deferred due to supply chain constraints. Mobile phone users on contracts may defer replacing their devices due to lower consumer confidence.
- While factories in Asia are reopening, companies are experiencing challenges getting production fully running. The short- and potential long-term impact could be significant.
- In contrast to the parts shortage and unpredictability of supply chains dragging down the industry, the software is a growth catalyst.
- Companies with remote-working technologies are already seeing increased demand as businesses increase their remote-working capabilities.
- Security software will see third-order benefits from a growing remote workforce. IT spending on security software will increase as organizations race to secure endpoints, particularly cloud-based tools, log management, and VPNs.
- Hardware companies may see major demand coming from enterprises, who are placing large orders for laptops and mobility devices to support employees now working from home.
- IT spending forecasts indicate continued demand for cloud infrastructure services and potential increases in spending on specialized software. Forecasts also anticipate increased demand for communications equipment and telecom services as organizations encourage employees to work from home, and schools move to online courses.
- Most organizations do not have a tech stack in place for a reliable business continuity plan (BCP). Due to enhanced remote work scenarios, IT departments will play a larger role in future BCPs and will need help from IT service providers in procuring devices, setting up a resilient, flexible and secure network, disaster recovery systems, IT security, etc.
- The need for ever-faster access to data and automation will enhance the focus on network equipment and communications as never before, speeding up 5G network deployments and adoption of 5G equipment.
Other Impacts That We need to be Worried about –
- 5G on pause – For now, the full launch of 5G across the globe will come to a halt.
- Cloud Storage as critical supporting infrastructure for the crisis and beyond
- Rethinking priorities in the personal and business computing form factor
- Centralization of retail and food distribution