CoronaVirus, a pandemic has hit the global market and economy like a wildfire. An attack slowing down the economy with its abrupt effects.
Corona, originally Covid-19, its base being Wuhan, China. Often addressed as Chinese Virus to. A virus having just the common symptoms but affecting internally a lot.
Not only the economy but productions, stock markets, industries (IT/Non-IT), factories are facing the downfall. Who would know it could affect so severely in all sectors. Making it a huge loss to the economy, forget about the profits, to make one end meet seems difficult in a crisis for the common people.
In control of this outbreak, the government decides lockdown and temporary halt for a few months to stop the spread of the pandemic. Analyst fears volatile if it continues. Physically, it is resulting in unemployment, layoffs in many sectors. The US has registered the highest unemployment signaling towards a global recession. The crisis has impacted heavily global regions slowing the economic rate. Europe, UK Markets shut the US on its way. It says a lot about risk management, financial management on a global scale. The testing period indeed has many things confined in it.
Let’s take a dive into the IT industry which is having its clear effects, yielding people to work from home due to months of lockdown. Can it be boon or bane? Or Likely to be both.
When looking to its brighter side, contractual hirings and freelance has gained its importance. Might just as it fits in the pocket of the organization and seems to be a better choice.
Dark side research depicts hands-on sore nerves. Companies have been quick to lay off employees fearing financial burden out of panic. According to Statistics, it is hitting trillions and might create a global recession which will take months to cover up the losses. Thus, slowing down the economic growth of countries and might be an end to a decade of expansion.
20% decrease in job performance and
41% decline in job satisfaction.
Hard time for owners as well as job seekers. Though the Government, businesses, industries, and others have started taking preventive measures opting for possible ways. Still, implementations have a long way to go.
On a wider picture, it might affect GDP and this year can have a slow start. But when handled properly can deal with the pandemic affects. Time is moving like a tortoise, but we’ll be back on road again
India gets most of its revenue from European and US markets/industries. Being a global issue, B2B clients and customers have either postponed their projects and work due to prevailing conditions which however affects the invoice payment or deferring work.
Core factors are debts and inventory build-ups, the possible reasons are no denying facts that due to this pandemic that projects payments have been at a halt considering global lockdown, companies lacking the liquidity also says about this mismanagement financially which has created a panic and left with a layoff or salary deduction taking place. For this to go well, Measure twice and cut once.
Business, disaster, and risk management are multiple factors. Expected to impact 3-6 months more in terms of work and manpower. Work from home doesn’t yield the same results as earlier. Productivity is affecting so IT Centers are not able to maintain the same level of business continuity if considered in a long run.
Technologically, it might increase the chances of data security and data theft.
Possible measures on how to deal with the crisis
Involve Strategic planning, analysis, funding facility, and considerate measures. Take this as an opportunity to learn how to make organizations more resilient. To protect the business, it requires making tough decisions.
Second, Ensure your organization has the necessary liquidity to manage. Keep open communication with your employees to make them aware of the situation you are dealing with. Deal together. Keep loyalty, transparency, and relationships. This time it’s crucial for all and calls for uncertainty. If you survive, there are chances your employees won’t go. People remember how you treat them in difficult times and that is what matters. You need to be attentive to the needs of your employees.
The organization that has no other options except for laying off has to deal with 2 more scenarios. First being, As a working replacement for fired employees, the one who stays has to do more work with less time. Secondly, when conditions get in control and all start to run again, they might find it difficult to retain employees or they might need people immediately. Be prepared for both.
This crisis too shall pass, the storm is letting us know how we can emerge from this, how far can be stretched.
Environmentally, nature has benefitted from this. The lockdown has open doors for animals, birds, nature has started to blossom with a decrease in pollution rate. Finally, the earth is breathing.
Getting on track:
To cope with economic downfall, every country seems to work on its economic models; it’s time to reconsider them all.
Infusing Digital transformation this time is a bonanza, It is all that connects us and can let us keep moving. The best step would be integration technology with business needs by Fulfilling needs and demands through digital mediums, where technology helps in innovations and making applications and solutions real-time.
Ecommerce industry has presented a clear picture as an example. Folks have switched to mobile applications for the purchase of necessary commodities, hence increasing online business by ensuring proper hygiene. Not just commodities, fashion, appliances etc. Companies like Amazon, big basket are benefitting from this a lot. This may give a boost to their sales.
By 2020- 2021, Companies would see growth improvement in revenue, By robust models, effective team management, high return ratios can help to combat the situation.