The Effect of COVID 2019 on The Tech Business and IT Outsourcing

The Effect of COVID 2019 on The Tech Business and IT Outsourcing

The pandemics crisis has put the whole world into a hold and made businesses face an array of new challenges, some of which companies were not ready to handle. The Tech industry is no exception. The rapid shift to remote and WFH mode, decrease in market demand, and supply chain disruptions have posed many security and business continuity challenges. 

IT Outsourcing in the Post-pandemic World

Most companies had no other choice to go on some business processes by shifting orders to etch vendors in the remote mode. This has brought IT outsourcing to a new level as a trusted and reliable cooperation in the forced remote environment. 

Businesses have faced proven IT outsourcing benefits, such as flexibility, extended talent pool, cost-effectiveness, and increased security. The remote mode has become the only way to continue business operations securely as long as companies can ensure safe procedures.

Let’s take a look at the Ukrainian IT outsourcing market, which is very popular among the US companies. The remote mode was nothing new to most IT companies in Ukraine, as nearly 80% of them have extensive teleworking experience, as the IT outsourcing company ELITEX reports in its blog.  

How the Crisis Affected Software Companies in Ukraine  

Some of the Ukrainian IT companies went remote and continued working, while others had to leave their offices for forever and reduce the development teams. The crisis has forced firms to make rapid cost shortages, which resulted in closures of some projects, namely those in travel, restaurant, tourism markets. At the same time, most large tech companies haven’t decreased their programmers’ teams but had cut some other expenses. 

Final word on Covid impact in IT industry

The COVID-19 crisis has forced the whole world to reconsider goals and quickly adapt to the new environment. With the work-from-home model being the new norm, IT outsourcing has become the major cooperation procedure for businesses worldwide. At the same time, software development and IT firms are improving operational processes, such as effective management of remote teams, understanding clients’ needs in the new reality, enhancing their security management systems, and adapting to a new industry environment.

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