COVID-19 and IT Sector

Earlier in 1978, computers were mainly used to perform complicated calculations but as soon as they were applied to indexing and sorting written information, the term “Information Technology” was invented.


It is a term that encompasses all forms of technology used to create, store, exchange and utilize information in its various forms including business data, conversations, still images, motion pictures, and multimedia presentations. It is basically includes the designing of the hardware for processing information and connecting separate components, and developing software that can efficiently and faultlessly analyze and distribute this data.

IT is mainly known within the context of business operations as opposed to entertainment or personal technologies.  Several products or services within an economy come under it including computer hardware, software, internet, electronics etc. 

Currently, the world has been affected by a pandemic ie: COVID-19 that has caused drastic changes in most industries. However, one of the major impacts has been witnessed in the IT industry.

The negative ones are mostly more than the positive ones. It seems likely that consumer sentiment and behavior will be shifted, at least temporarily, by the pandemic and its fallout.

Even once the world moves past the peak of the epidemic, it’s unlikely that people will return to life as it was before the outbreak. Instead, there will likely be a new normal where awareness of germs and infections is higher, and uncertainty about financial outlooks lingers. Things may feel unstable for months to come, particularly if the second wave of infection hits in the winter as some have begun to predict.

These changes in sentiment and behavior will underpin the future of tech and human interaction with it. For example: in order to stem the tide of the pandemic arguments are already being made for using location data from smartphones to do contact tracing. As of mid-April Google and Apple have said they’re working together to use technology to track and limit the spread of the virus. This type of surveillance would have been inconceivable a few months ago, but it’s gaining greater buy-in during the pandemic.

However, the Smartphone companies are suffering a huge loss and their production is also projected to decline by 12%. For example, Apple Inc. is estimated to have at least a 10% fall in its shares because of the lack of availability of iPhones in the market. The parts that are required to build the iPhones are supposed to come from China, and it is facing a major lockdown. 

The impact can also be seen on raw materials supply, disrupting the electronics value chain, and causing an inflationary risk on products.

The greatest loss it has suffered is due to a major fall in the economy. Mostly all of the companies have asked their employees to work from home due to their concern regarding the health and safety of the employees. Due to this, there is a massive loss in opportunity for many companies that have international dealers. Smartphone industry because of its labor-intensive supply chain. 

In order to expand their horizons, these companies tend to have an ample amount of conferences or meetings with multinational companies which is a great opportunity for them. However, even these meetings are either getting postponed canceled or shifted to teleconferences which won’t have the same reach. There has been an estimated loss of US$ 1 Billon due to these cancellations. 

Staffing concerns are also ramping up for full-time employees, as well as gig workers, such as drivers, delivery workers, and retail staff, who often work as contractors. There has been a slowdown in recruiting and production which is affecting a future pipeline of skilled workers. Cybersecurity risks are also likely to rise as a result of more people working remotely.

Sudden or the prolonged economic downturn is leading to budget cuts in the companies that would eliminate discretionary spending and also remote work, online education and social distancing will create demand for products and services delivered by the tech industry due to which the technical support may struggle to keep up with the demands. 


The pandemic has demonstrated how reliance on human labor makes it impossible to keep the economy running during a viral outbreak. Because the best scientific predictions estimate that we may be dealing with this for another year or two, and because there’s no guarantee we won’t experience another pandemic five, ten, or twenty years down the line, we’re seeing an even greater degree of focus put on using AI to do jobs that are risky for humans under the circumstances.

Unlike humans, robots are not susceptible to the virus and can continue working during a pandemic or other crisis without risk to health and safety. Increased use of AI in these high-risk jobs also limits corporate liability in terms of providing workers with a safe working environment.

However, the global healthcare information technology has witnessed a huge growth. North America accounted for the largest share of global healthcare information in the technology industry in 2019, followed by Europe. The large share of this region is attributed mainly to a high number of positive COVID-19 cases and deaths in the US, a robust healthcare system and IT infrastructure, and the presence of many large hospitals in the region.

Moreover, a large number of major global players are based in the US, owing to which the country can easily manufacture these devices. The prominent players in the global healthcare information technology market are Optum (US), Cerner (US), Cognizant (US), Change Healthcare (US), Philips Healthcare (Netherlands), Epic Systems (US), Dell Technologies (US), and Allscripts (US), among others

Companies are directing more investment toward powering distance working, including investment in things like cloud solutions and conferencing and communication tools.

Distance work will increasingly include medicine, with the greater availability of telehealth systems almost certain to come as a result of the pandemic. Telehealth options are key to slowing the spread of the virus and to ensuring healthcare systems can continue serving all patients while keeping them from crowding into the waiting rooms.

An influx of investment in telehealth technology powering secure video appointments, secure messaging systems, online appointment scheduling systems, online prescribing, and online billing and payment system are also expected due to the current situation.

Technology has one of the most important roles to play in enabling us to meet the challenges presented by the pandemic and to be better prepared for whatever comes next. COVID-19 will reshape tech priorities for corporations and governments, including greater investment in telehealth, cloud infrastructure, and contactless digital alternatives to touch interfaces a lot of opportunities opened up in the IT industry, such as the growing need for the 5th generation (5G) technology. This will help increase connections that support the primed remote interactions. This has become the top priority for many organizations due to the pandemic.


Telehealth is one of the developing industries in the crises. This could help people to get diagnosed, treated, and operated with the need of a physician to be physically present. A lot of apps have been built in the past few months to help achieve this. There are many patients who are in self-quarantine who need medical supervision and medical assistance every day, and these applications could help them achieve that.

The main reason for this increase in the economy for this industry is the increased demand for software and social media platforms such as Google Hangouts, WhatsApp Video call, Zoom, and Microsoft Teams. All these teleconferencing tools help the people who are in quarantine to stay in touch with their family members as well as have conference meetings and work at the same time.

The economy will also blossom because, during these crises, people understood the importance of the internet and technology as this is helping us stay safe and helping in the communication between the doctors and the public. 

Many countries who are facing the shutdown have invested in smart city solution such as the cops in China are using drones attached with thermal sensors to identify the symptoms for coronavirus and get immediate medical help. In Australia, the government had launched a chat-bot to keep the citizens up to date with the situation and answer their questions so that they will be able to decrease the spread of misleading information and stop the panic that could be created in public.

In South Korea, the local government has launched a Smartphone app that keeps the self-quarantine employees in touch with their co-workers to keep the updates to the work process and to ask any questions.

In January, in China, the telecom AHS designed a 5G powered system to enable the consultations and diagnoses of people affected by the virus by connecting the physicians at West China Hospital to 27 other hospitals in the area to treat the illness affected people. This not only helps doctors to communicate faster and come up with a diagnosis but also helps to keep track of the emergency patients who need immediate medical help and if a hospital is not able to provide that the patient could immediately be shifted to the nearest equipped hospital for assistance.

However, once the pandemic is under control there is still bound to be a certain amount of fear and doubt that linger about infection from contact with surfaces. Though the risk of contracting COVID-19 from surfaces is lower than from direct contact with droplets from an infected person, people will want to limit risk as much as possible. 

We will begin to see the far greater availability of contactless interfaces as a result. In a nutshell, the impacts are not likely to end in this sector but the companies are trying to take initiatives and efforts in order to minimize the losses and instead take out the benefits from the current situation.

Writer: Anisha Kapoor

Editor: Sonal Kamble 

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