Covid-19 Crisis Could Eventually hit the IT IndustryMay 02, 2020 10:22 AM
Tough times ahead as the lockdown due to Coronavirus might take a toll on the IT sector. The financial year had been a disaster due to the Covid-19 pandemic. Apart from the small enterprise, even the top companies like HCL, TCS, and Infosys had been tremendously impacted. The lockdown had resulted in a decrease in spending from various clients in Europe and the USA. The impact is evident in the HDFC security where the revenue from the IT sector has minimized and there is a reduction of 2-7%.
The work from home option is still available for professionals, but the layoffs would begin in the next few months if the lockdown continues. To make up for the economic slowdown due to Covid-19 a dramatic suggestion was given by Narayan Murthy over a tweet. He suggested that Employees should work for 60 hours a week. This tweet did not go well with many Employees. It was construed as insensitive. Many even corrected him that IT Employees work for 80 hours a week. One particular tweet was rather condescending towards the entrepreneur. The tweet was a direct attack on Narayan Murthy and demanded him to pay 60% additional taxes for three years to boost the economy.
Telangana Information Technology Minister K.T. Rama Rao is taking measures to curb the slowdown. He appealed to the centre to bail out the small and medium enterprises in the IT sector. The 6 lacks employees working in the IT sector are facing a huge challenge in this Covid-19 crisis. Small companies are seriously impacted and they require waivers and reliefs. The minister had gone one step further and suggested to give interest-free loans to small companies for one year at least. He also suggested increasing the borrowing capacity of small and medium enterprises. He urged the centre to return the money collected through income tax and GST from the small companies.
Apart from the financial matters, he stressed on the health aspect in SEZs and IT parks. The population density per sq Km is not encouraging. In fact, small office spaces accommodate several employees. This isn’t good enough to maintain proper social distancing. The minimum space suggested is 100 to 125 feet per employee. Hyderabad over the years has shown huge potential in creating a perfect ecosystem for IT companies and BPO sector to flourish. Approximately 5,43,033 work there according to 2018-19 report.