Covid-19 Pandemic : The Impact On Software Development Company In South East Asia
By Eva Holmes
The global Covid-19 pandemic is largely affecting the software development industry. China, a South East Asian country is one of the largest software development hubs in the world that has experienced a sudden thrust. As the market is strongly interconnected, the entire region and almost every part of the world has been adversely affected. Do you know how?
Here, you will learn the severe impact of the coronavirus outbreak on any app development company in South East Asia.
The Effects of Covid-19 Pandemic on a South East Asian Software Development Company
Here are the major impacts:
Delay or Cancellation of Technical Supplies Worldwide
Many leading international technology brands are totally dependent on China-based manufacturing units. Due to coronavirus outburst, several factories are operating with restrictions. Some of them have even stopped operations and closed their units temporarily. They are facing scarcity of materials and subsequently delay in shipping. As per a research by Chinese market research companies, coronavirus is expected to lower down technical production by 10.1% in 2020. Moreover, the production of smartphones is likely to lessen by 10.4% in the coming days.
IPhone SE2 and 5G iPhone sellers are keeping their customers waiting for months post the coronavirus outbreak. As sellers kept their stores closed till 27th March 2020, they have suffered from huge losses in the marketplace. Though the online stores continued to operate, Apple suffered a loss of billion dollar money. The IT, telecom and communication industries that work along with software development companies have produced less TVs, video games, smartwatches and smart speakers. The shipping delays of smart phones led to an approximately 10.4% loss in the first quarter of year 2020. The notebooks and video games also witnessed a decline of around 12.63% and 10.1% in the past few months.
Postponement or Cancellation of Tech Conferences
To combat the spread of coronavirus, almost every country has imposed lockdown and banned conferences, social meets and any form of group gathering. As domestic and international travels are not allowed, many international tech leaders are postponing and even canceling their big events. For instance, Apple postponed the date of their World Wide Developer Conference (that connects billions of software developers) to June.
Microsoft Builds, a conference where developers meet each other and share the cutting-edge technologies is to be held from 19th to 21st May. Dell World believes that health is the most important and thus, they have decided to conduct the conference via online mode.
Rise in Demand for Online B2B Technology Communication
An increasing number of online conferences by leading companies has escalated the demand of digital communication in the South East Asian IT scenario. Besides IT/ software development companies, almost all schools, colleges and institutions are shifting their preferences to online learning.
Many big IT companies are experiencing deterioration in supply chains amidst the corona virus crisis and thus, bearing huge losses. Nowadays, B2B companies are opting for online conferences and meetings and earning high revenues. Due to this, online video conferencing service providers are earning well. As per financial reports, Zoom Cloud Meetings, a popular video communication app earned a total income of $15.3 million this year that is overwhelming as compared to last year income, i.e., only $1 million.
Shift from Office to Remote Working
As local governments put restrictions on socializing post outburst of coronavirus, software development and other companies have embraced the 'work from home' culture. To control the spread of deadly virus and death tolls, people are doing their official work remotely.
With more than 3 million Covid19 affected cases worldwide, industry biggies such as Google, Apple and Microsoft have asked their employees to work from homes. In South Korea, Japan and Hong Kong, famous social networking website Twitter requested 5000 employees to work remotely. Presently, every office is giving importance to remote working that is a blessing for the success of SaaS software development.
Job Insecurity Among Employees
Covid19 pandemic has deteriorated the job market in South East Asia and other parts of the world. Besides being fearful of getting attacked by coronavirus, they have become emotionally disbalanced and highly tensed about losing their jobs. As most of the employees are working from their homes, they are not feeling secure of their jobs. According to a survey conducted by Blind, approximately 53.8% of employees are tensed about losing their jobs.
In the coming days, South East Asian companies may shift from native app development to progressive web app building to cut down their cost and give job security to employees.
Boost in Engagement Among Streaming Companies
No matter the size, each and every software development company or app development consultancy is affected by the sudden outburst of Coronavirus. As people are stuck inside four walls these days, they feel isolated and bored at times. This resulted in an exceptional growth in demand for video and entertainment streaming. The gaming industry is making money during the crisis as video streaming is bringing in revenues because of more download of web series.
Gaming and streaming industry, the sub-category of the technical industry is growing more favourite among people with every passing day. Some of them are taking initiatives to live up to high expectations of customers. Many gaming networks are finding it quite difficult to deal with the sudden increase in demand among customers and making most of the servers. In Italy, web streaming has notably increased by 57% after the corona virus outbreak.
The Bottom Line
Covid19 pandemic has affected almost every part of our world including South East Asia. Local governments are leaving no stone unturned to control the spread of coronavirus and save their population. Most of the offices and organizations have stopped operations to promote social distancing.
Software development sector is trying their best to deal with the complications in web application development. The reputable brands are experiencing a noticeable delay in product shipping, B2B technology platforms are going online and streaming/gaming services are increasing. Thus, Covid 19 impact on a software development company is neither positive nor negative. The software industry is rather moving ahead by implementing precautionary health measures amidst the coronavirus crisis.