The COVID-19 pandemic has had a widespread impact all over the world. Since then, businesses have continued to experience long-term effects. In this blog post, we will discuss the effects of the pandemic on businesses in tech and software.
Coming into 2020, the world wasn’t expecting a sudden lockdown away from the outside world. The COVID-19 pandemic took over all aspects of human life, including business. It has impacted industries and livelihoods that caused major shifts in how people lived.
For one, many businesses were forced to shut their doors due to the outbreak. This has had a ripple effect on the economy, with unemployment rates soaring and consumer spending plummeting.
In addition, the pandemic has also accelerated the shift towards digitalization and remote work. Many companies have had to rely on technology in order to continue operating during this time.
These are just some of the short-term effects of the pandemic on business operations. However, there are also long-term effects that businesses need to be aware of.
4 Major Long-term Effects of the Pandemic on Businesses
While the world is slowly healing and everyone is adapting to the new normal, the pandemic will have considerable impacts in the long haul. Here are four major long-term effects of the COVID-19 era for businesses:
#1 Increased dependency on technology
The pandemic forced businesses to rely even more heavily on technology in order to continue operating. As a result, people also discovered efficiency in using software tools to perform previously manual tasks such as notifications and information delivery.
This trend is likely to continue in the post-pandemic world, as businesses will need to be more agile and adaptable. They will also need to invest in new technologies in order to stay ahead of the game.
#2 Rise of remote work
The COVID-19 pandemic has led to a significant increase in the number of people working remotely. This trend is expected to continue in the post-pandemic world as more businesses adopt flexible working arrangements.
On the other hand, many employees in tech are also seeing the perks of working from home. As a result, the majority of software developers are looking for work opportunities with flexible site arrangements.
#3 Change in consumer behavior
One of the effects of the pandemic on businesses is that it changed the way consumers behave and interact with businesses. For example, there has been a shift towards online shopping, contactless payments, and delivery of everything from fast food to groceries.
This trend is likely to continue in the post-pandemic world as consumers become more comfortable with digital channels. With more than 6 billion mobile phone users globally, customers would want to access your services anywhere.
#4 Increased focus on health and safety
The pandemic has put a spotlight on the importance of health and safety. Businesses will need to prioritize these factors in the post-pandemic world in order to win over customers and build trust. Many companies encourage their employees to get vaccinated to protect themselves and each other. At the end of the day, a healthy workforce ensures productivity.
These are just some of the long-term effects that businesses need to be aware of. The COVID-19 pandemic has changed the business landscape irrevocably, and companies need to adapt in order to survive.
How to Adapt to the Impact of a Pandemic
The COVID-19 pandemic has caused many businesses financial problems. Looking forward, businesses should consider how they’ll adapt to major disruptive events in the future. Following are four actionable items to make your business more resilient for the next calamity.
Invest in Digital Transformation
Even without anticipating another pandemic, you need to invest in digital transformation. Digital transformation means that you should be investing in technology that will help your business operate online. This includes things like e-commerce platforms, cloud-based applications, paperless paperwork, process automation, and online marketing tools.
Using technology in business processes streamlines workflows in any aspect. There are available tools that businesses can use for communication, scheduling, cloud computing, and security, among others.
Focus your efforts on Customer Retention
Healthy, resilient businesses focus on customer retention. This means that you should keep your existing customers happy and engaged. It is more expensive to acquire new customers than it is to keep existing ones. In this way, you will keep your revenue growth and improve customer loyalty—pandemic or not.
Plan your expenses carefully
Careful planning is important to every aspect of your business, but financial management is a live-or-die issue. Aside from organizing the cash flow on operational costs, you also need to build up cash reserves. This means setting aside money each month so that you have a cushion in case of tough times.
Another safety net would be to diversify your income streams. This means having multiple sources of revenue so that if one stream dries up, you have others to fall back on.
Explore remote operation strategies like Offshoring
One way to achieve a pandemic-resistant business is to embrace remote work options, not just in your country but globally. Why? There’s no telling where the next disaster or pandemic will strike.
There’s actually some security in having a distributed workforce – this way, you’re not putting all of your eggs in one geographic basket. Offshore teams can help you with digital transformation, customer retention, and cost savings.
Build a Remote Team Today, Reap a Pandemic-Proof Business Tomorrow
The pandemic has had a major impact on businesses all over the world. These impacts will be felt for years to come. So, businesses must adapt and change their operations in order to survive in this new reality.
If you offer tech-related products, now is the time to explore offshore software development. Many companies venture into offshoring for its cost-effective benefits and operational advantages, remote work included.
You can read more about the Benefits of Offshoring here.
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Full Scale is an Inc. 5000-listed company recognized as the 878th fastest growing company in America. We are a Kansas-based software development company that provides tech services through our offshore arm in the Philippines.
Our rigorous recruitment process filters the best software professionals in the market today. This helps us ensure that we provide our clients with top-quality developers when they need them. Our company has survived and even thrived amidst the pandemic. And we have surpassed more than 2 MILLION HOURS of service hours delivered for our clients.
If you want a partner who will help you ride out the next catastrophe, Full Scale is here for you!