Did you know, the total turnover of the corporate market in 2018 was 456.1 billion U.S. dollar? Moreover, these figures are expected to go as high as 507.2 billion U.S.D. by the year 2021.
Some of the countries such as China, Hungary, India, The Philippines, Poland, Russia, South Korea, Taiwan develop a major part of software for the world..
However, recently due to Covid 19, the development process is adversely affected. According to a recent study from the World Health Organisation, WHO, the total number of infectants has increased to 100,000 worldwide, and the same report claims a death of more than 4,984 deaths. These stats surely have an effect on the efficiency of the software industry.
Effect on major Tech companies:-
Corona has its impact on almost every business, however, the tech market is brutally affected. There are many potential companies that have banned traveling for business purposes. There are several events such as E3 2020 Gaming Conference, Mobile World Congress, The Geneva Motor Show, Facebook’s F8 Developer Summit, The Geneva Motor Show, Google I/O, Annual Snap Market Summit, Chipmaker Nvidia’s GPU Technology Conference have been announced canceled.
The five software giants – Apple, Microsoft, Alphabet, Amazon, Facebook – collectively had to suffer a loss of $1.3 trillion. Therefore, the possible chaotic conditions due to the propagation of Covid 19 surely have its haunting effects on software companies.
The Seattle area and Silicon Valley corridor are two of the most affected areas among other software-developing states or countries. These areas were the center of facebook, Alphabet, Amazon, Apple, and Microsoft.
Effects on small Software startups
Most of the countries are announcing a complete lockdown for some weeks or a month. Therefore, the small scale software startups which were expecting results in the forthcoming days have to let down their expectations for sometime. Moreover, those with little or no seed funding are lost in annihilation.
What are the steps of the companies in such a scenario?
As we know, and as per guidelines of WHO, there is no particular cure for Covid 19; neither have we yet developed any vaccine for the same. Therefore, precautions are the only way of remaining safe from this dreadful virus.
The software companies are trying best to pave ways to keep their employees safe. Most of the companies are offering work from home, and are conducting inaugurations through live-streamed content.
Apple, another leading software company, had to call off the Q2 Revenue Projection. Another major impact that Covid 19 has on Apple is the loss of the market of China. Apple has decided to shut down all of its 42 stores in China; moreover, it has also closed its contact centers in China.
Google is also not debarred from the effect of Covid-19. Its offices in China, Hongkong, and Taiwan have been declared closed. Similarly, Microsoft has also allowed its employees to work through their home. It has announced no reduction in the wages even after the reduced work.