Impacts of COVID-19 on Digital Industry

Coronavirus, or COVID-19, has been a life-changer for many in the world. The sudden entry of this virus in our lives has completely changed the framework of it.

It has changed the mechanism of our house-hold activities, our social gatherings. In short, our lives are changing due to it.

We can have an idea of this pandemic’s ramifications by stating that nearly 21 million people have been affected due to the Covid-19, and almost 1 million people have fallen to an unfortunate death because of this virus.

It will be impossible for the human race to come out of this traumatizing situation, unharmed and unscarred.

This pandemic (COVID19) has turned our world upside down.

Talking about minor and significant impacts that the pandemic has forced in our lives are manifold from the smallest facet of our life, such as shaking hands with someone, to our lives’ most significant aspects.

The pandemic has struck hard on many industries. It has forced many sectors to shut down its operations. At the same time, few sectors have less or no effects.

Impact of COVID-19 on Digital Industry

“We Will Get Dependent on Technology More Than Ever Now”

So, what comes in our mind when we talk about the digital industry?

Media, Information and Technology, online learning, digital marketing, e-commerce companies, web designing agencies, and many other fields that use digitalization are referred to as in the digital industry.

Usually, it has been said that the digital industry is a multifaceted and unconventional industry, which has the potential to adapt to the situation no matter how out of the ordinary it is. But this extraordinary situation came as a surprise for the whole world, including the digital industry.

The impacts foisted by this pandemic on the digital industry has mixed results. There are certain developments in the digital sector, and then there are some suppressing aspects present.

Negative Impacts of COVID-19 on Digital Industry

There are countless examples present that validate that this pandemic has been a curse for the digital industry.

As many small and medium-scale industries functioned physically. During the lockdown situation, which was imposed in more than 3/4th of the world, such small and medium-scale enterprises had no mechanism to shift their work on digital means. It was an eye-opener for such firms and organizations.

According to Uplers, a digital out-sourcing company based in India conducted a survey.

The survey targeted European regions, notably the United Kingdom. The survey was about the losses which digital industries had to suffer during this pandemic.

Nearly 66% of digital industries saw a downwards trend in their overall revenue during the times of the pandemic.

There could be specific reasons which may have played a key role, but the impact of Covid-19 on such organizations is also there.

On the other side, some small and medium-scale industries were hard-hit by this pandemic.

As no country was ready to face such a tense and strained situation posed by the pandemic, many digital enterprises were also not prepared to conduct their operations remotely.

Though it provided them with a chance to improve their working and process system simultaneously, the impacts of this virus were more severe on them because they were not capable of facing such a situation. 

Positive Impacts of COVID-19 on Digital Industry

Covid-19 has proved to be catastrophic for many small and medium-scale businesses involved in the digital industry.

The information and technology sector saw a growth of almost 16% during this Covid-19 phase.

Apart from this sector, e-commerce saw a growth of 15%. And digital healthcare services, which saw a rise of 14% during the time.

Amazon, one of the biggest international e-commerce companies, recorded massive sales during this pandemic.

According to Forbes, Amazon registered a $570 revenue in just the first six months of 2020, which increased its stock price. As small and medium scale industries could sell their products via Amazon, it was also reported that Amazon was able to sell and ship more than 3.4 billion products around the world. These facts and figures justify that Covid-19 has proven to be a blessing in disguise for e-commerce companies like Amazon.

The bottom line, the digital sector, which has a direct impact on customers’ daily life are on the boom like – e-commerce and digital healthcare services.

What Lies Ahead?

Some digital sectors have taken full advantage and have converted this problem into an opportunity to grow like an online learning portal, and many shut down.

So, it is high time for the organizations to make changes in their working models.

The Good news is more and more companies are transforming their working system into digital ones and have recognized the importance of digitalization.

Covid-19 has passed on many lessons and one of the most important of all of them is that companies must make sustainable working models that can help and assist them in any unsettled situation.

Though many negative impacts are caused due to the pandemic if the digital industry works more towards sustainable working models, they can boost their revenues.

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