Will the IT Boom See a Drastic Downfall in the Coming Years?

All You Need To Know About the Volatility Brewing Up In The IT Industry

Will the IT Boom See a Drastic Downfall in the Coming Years?

The fervently positive impact that the COVID-19 pandemic brought was that it made everyone habitual of the technology. Indeed 2020-2022 was a roller coaster ride for the IT industry but the coming years will not be the same. As per the latest predictions, all the fancy perspectives of the IT industry will see a major slowdown and steer deceleration. Through this article, we will discuss how the IT boom will see a drastic downfall in the coming years. The IT sector has been severely impacted by the phases of the slow economy. Mass layoffs, declining margins, commodities becoming more expensive due to unstable geopolitics and sharp declines in stock prices are some of the essential points that contribute to the upcoming crisis in the IT industry.

Companies in various other sectors like instrumentation, semiconductors, chip manufacturing, and cloud computing decimated their future projections and experienced poor growth because of falling stock prices. But on the other side, technocrats and analysts are also predicting that the IT industry will continue to grow in the coming years as all businesses are shifting to digital modes. Even consumers are so much more adaptive to purchasing things online that even the smallest domain has loads of business opportunities online. But where is the actual diversion then?

During the COVID-19 pandemic as everything shifted online, tech companies and businesses in general, moved towards massive hiring for IT professionals to procure their businesses. Immaculate salary packages were both demanded and provided during the pandemic which made everyone go crazy about venturing into IT in some way or other. Many giants like Microsoft, Twitter, Cisco, and others announced huge layoffs as the IT sector started becoming pricier and sluggish. To be precise with the numbers, the white-collar players of social media and tech domains like Apple, Amazon, Facebook, Netflix, and Tesla lost a market space worth 3 trillion dollars. Why? Because the sector started becoming redundantly populated and competitive! By the year 2022, a total of 1,50,000 jobs have been laid off due to strict funding conditions in these giants. A report released by Inc42 said that the company itself lay off more than 15,000 jobs due to strict funding conditions.

In India, the IT sector will become dependent on factors like economic conditions, customer demands, business ecosystems, and tech developments. While all the tech companies are showing good numbers of progress and remain confident of their projections, the upcoming potential slowdown in the global economy will have a heavy hand in the whole scenario. Larger IT companies may be in a safer position but we have to wait to see the anticipated revival in IT.
But indeed the IT industry is known to thrive back amid all situations and has the agility to adapt to changing scenarios. Indian IT might for sure be surrounded by some slowdowns in the next few quarters but chances are there that the industry will survive even amidst the toughest economic times. Moreover, the Indian IT players have also expanded their horizons into other domains and markets which help them to lower the impact of wavering times in specific areas.




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