Covid-19 Impacts on Technology Sector in the UK

Covid-19 Impacts on Technology Sector in the UK

The United Kingdom’s tech industry is the fastest-growing sector and it will maintain flexibility despite the Covid-19 outbreak, according to a new analysis from global recruiter Robert Walters. 

 

In the 1st quarter this year, permanent job vacancies in the tech sector increased by +32.56%, and contract tech roles increased by +48.27% (Q1 2019 VS: Q1 2020) (JobFeed data). 

 

The UK’s tech sector is growing at 2.6x rate of UK economy, and behind the Silicon Valley in the United States, London has been ranked as the second most connected place for tech in the world – Tech Nation Report. 

 

As COVID-19 is spreading rapidly in each and every part of the world and it is impossible to escape the predictability of COVID-19 impacts on business, un-doubtable the Tech Sector is one of the more intact sectors and it also has an advantage in the shape of “work remotely”. Twitter has told staff that they can work from home "forever" if they wish as the company looks towards the future after the coronavirus pandemic. As work from home measures during the lockdown had been a success. Another Social Media Giant Facebook has extended work from home for their workers.  

 

Tech job vacancies are up (compared to the same period last year) in Manchester (+44.33%), Milton Keynes (+26.95%), Birmingham (+27.29%), and in London (+16.60%) (JobFeed data). 

 

It is extremely possible that financial shockwaves will be felt from an operational slowdown in other sectors as well as Tech sector. “According to a latest survey conducted by Internet Retailing (Coronavirus Consumer Tracker) more than half of UK consumers' online orders have been affected and their ability to order takeout food online was reduced.  

 

Covid-19 is affecting a lot of ecommerce businesses the way consumer shops online. As the big markets are closed all over the world specially China and the US, it is very difficult for ecommerce companies to meet the requirements of their customers. More than 70% of UK ecommerce businesses are not working properly. 

A very stimulating economic development that has been observed, due to the nature of their offering the certain companies have experienced a boom during this period. In the consumer goods market, we have all observed the flow in demand for necessities such as hand sanitizers and long-life food. Within technology, it is those applications concerning productivity, telecommunications, and entertainment that have seen the most drastic increases to their respective user bases. Certainly, companies that were more mindful in the development phases of their platforms, have been better able to leverage the opportunities that have arisen. 

 
As every business is isolated and on the topic of dealing with isolation, working remotely cannot be effective across the entire economy. As we are restricted to construct buildings, or host events from home, or mass-produce clothing. However, software development occupies a rare niche in which companies can operate through teams that are working entirely remotely, and all around the world. In fact, many of them already do. 

 

Both during this crisis and in the immediate aftermath, there is no telling just how high even the smallest company can climb by focusing on agility, big ideas and a growth mindset. 16 weeks is not a particularly long time period in the business world, particularly within a sector in which the most successful companies think in decades and not years. 

 

However, since the beginning of May, there has been a substantial uplift in reattribution, indicating business spending has resumed somewhat and that consumers may be gradually returning to their usual shopping habits. Statistics from the last week of April show reattribution at its highest level so far this year, proving that although new customers may be harder to come by, existing customers are being more successfully engaged by brands. 

 

Whatever the case, this pandemic has opened the possibility for many companies who once thought to work remotely and from home was impractical and improbable to achieve, and this new way of working will undoubtedly remold many roles throughout every industry.