Is COVID-19 Situation hampering the Growth of Technology and Its Sector
No industry is left unaffected by the COVID-19 pandemic. While the impact on some sectors is severe, for some, the pandemic has put a halt on their growth for the short-term. The tech industry comes in the latter segment.Hard Tech
In the short-term, the tech industry will be facing major setbacks. The global supply chain disruption due to closure of industries in China, the biggest supplier of tech parts, has tech companies scrambling for parts.
Mobile phone companies, electronic device manufacturing companies, and other tech companies will feel the pinch in the short-term. Once the supply chain returns to normal, things will look better. But the future is uncertain for this segment of the tech industry as the looming recession will bring low demand for the products.Information Technology
Information Technology, another important segment of the tech industry, is also facing problems due to COVID-19. In India, where the majority of the IT companies are export-oriented, they are hit hard by the pandemic.
Major Indian IT services importing countries are the US, the UK, and the European Union. All these countries or regions are reeling under severe economic stress due to the pandemic. Relying on these countries for the survival of the Indian IT sector is inconceivable, at least for the short term.
The Indian IT industry has already chalked out plans to turn the tide. The industry is looking to bring out software products for the local market. As businesses in India are maturing, the demand for software products is increasing. The IT industry is ready to cater to the demand.
Another segment of the tech industry that is facing short-term hiccups due to COVID-19 is the web development industry. As the economies are struggling and businesses are shut, the web development industry is struggling to find new projects. The majority of the businesses are trying to save cash and are unwilling to invest in a website for the time being.
According to a well-reputed website development company, the sector will struggle in the short-term but will grow in the long-term. The reason is, the current situation is showing that businesses that have a website have managed to stay afloat. They have garnered new customers and managed to serve existing customers. Thus, in the future, more businesses will invest in a website.Bottom Line
The reality is that the tech industry will face short-term setbacks. Dwindling financials and low demand has put the tech industry in a tough situation. But the industry will bounce back soon. New technological innovations will bring back the tech industry to its full glory once the world economy kickstarts.