Corona Virus impact on Indian IT Industry

Similar to the 90’s dot com burst and 2008 recession, the Corona virus came uninvited and shaken the world’s economy. 

This story is about the Corona Virus impact on Indian IT Industry. There are negative as well as the positive effects of this pandemic on the Indian IT Industry. 

Layoffs, furlough, and reduced hours

Indian IT Industry is heavily dependent on the US and Europe based clients. Since Covid-19 has hit these regions hard, it will put high pressure on large companies to cut their IT spending, eventually forcing Indian IT firms to cut down in employment. Having said that many IT companies will layoff or send employees on forced leave or reduce the billing hours of contractors


Video communication will boom

Video communication is not the new thing; however, it came as the one and the only solution during the Covid-19 crisis to connect the team and communicate effectively.

During this lockdown, many IT professionals realized that many tasks could be done over video conferencing rather than traveling distant cities and countries.

Video conferencing industry will continue to boom as it passed the real-time resiliency test and changed the mindset of thousands of IT professionals

Work from Home and Productivity debate

It is prevalent to work from home in foreign countries like the US and UK; however, India has still not adapted work from home culture. 

This Covid-19 crisis gave a golden opportunity to many Indian IT professionals and their managers to work from home while it is debatable if work from home in India increases productivity; here are a few other key points. 

  • Bond with family as you stay at home the whole time 
  • Realizing it is not easy to stay at home; many IT professionals ending up working more hours at home
  • Infrasture challenges such as power cut or slow internet connection 
  • Saving time with no commute and ware just a boxer and blazer to attend the video conferencing call 🙂


Many great startups were born during the financial crisis and 2008 recession; I am hoping I will hear about some great startups once this lockdown and Covid-19 crisis is over.

Immigration and Onsite Travel

Onsite is a great deal for Indian IT professionals however due to high unemployment rates in the US resulting declines interest in immigration

People who are already having a visa and ready to travel onsite to the US or UK may have to wait until the situation is clear from the budget and travel perspective. I will not be surprised if some of the onsite roles are no longer required once this crisis is over.

Online learning

Since all IT professionals are working from home, they would have more time to learn new skills and attend online training

Many leading online learning companies are already giving a discount on online courses and training


What do you think?