The Coronavirus outbreak (COVID-19) is impacting human lives and businesses around the world. While some may feel overwhelmed by the daily barrage of news and the ebb and flow of new cases being reported around the world, others are trying to ignore the news and just go on with life. However, the impact of this pandemic (ref: WHO) on the global economy, businesses and those of us in the global technology sector is real.

Business leaders of multinationals with operations and supply chains across China and Asia are watching the emerging trends day-by-day. CEOs and corporate leaders have begun to announce revenue loss this quarter, and perhaps for the rest of the year. The global stock markets have been tanking and Investors continue to struggle to make sense of all this.

Impact on Indian IT

Indian IT firms and software development centers employ millions of highly paid workers who service multinationals and clients from across the world. The leaders of these firms and technology centers are also anxiously watching the impact of the unfolding events. A slowdown in global stock markets, supply chains, sales and targets at large organizations will lead to tightening of budgets and discretionary spending. Here are a few things likely to follow

In response to local government directives, IT employees have been asked to work from home.

Indian government has imposed travel restrictions, and hence employees won’t be able to travel to client locations for projects, requirement gathering and other workshops. This will directly impact revenue and operations of IT companies

As client’s and multinationals review their IT budgets, there will be a spending freeze. This will directly impact the revenue of Indian IT and service firms.

Software service firms and consulting organizations are likely to see a drop in the number of new projects and engagements

People working for captive IT centers and multinational organizations may also be impacted if companies tighten budgets and begin cutting headcount

You don’t need a crystal glass to forecast the above. All this is unfolding as business leaders react to the new reality. Some of it is perhaps the ‘worst case’ scenario.

In the best case, business leaders are hoping that a vaccine for COVID-19 rolls out and the epidemic is contained before further slowdown in the global economy.

So, how can you prepare to tide this slump?

While global leaders and businesses focus on turning the tide and minimizing impact from the outbreak, here are a few things individuals can do.

Review your personal finances – This is a good time to take stock of your personal finances and plan for a financial cushion. Experts suggest that people set aside 3-6 months of expenses in a rainy-day fund. Ask yourself if you have such funds set aside.

– This is a good time to take stock of your personal finances and plan for a financial cushion. Experts suggest that people set aside 3-6 months of expenses in a rainy-day fund. Ask yourself if you have such funds set aside. Bonuses will be hit – Most software and service firms are bracing for a financial impact for the rest of 2020. Therefore, year-end bonuses that are tied to stock prices and earnings are likely to take a hit. Ask yourself if you can manage your personal finances and stay motivated on the job if your performance incentives takes a hit?

– Most software and service firms are bracing for a financial impact for the rest of 2020. Therefore, year-end bonuses that are tied to stock prices and earnings are likely to take a hit. Ask yourself if you can manage your personal finances and stay motivated on the job if your performance incentives takes a hit? Evaluate your skills and resume – It is generally a good idea to re-visit your resume and marketable skills periodically. In the unlikely event of a job-cut, are you prepared to look for new opportunities?

– It is generally a good idea to re-visit your resume and marketable skills periodically. In the unlikely event of a job-cut, are you prepared to look for new opportunities? Get out of your comfort zone – while tech companies struggle with the impact of COVID-19 and travel restrictions, employers are asking staff to work-from-home. Employees who aren’t used to working from home may find it unsettling. You should plan to setup infrastructure (room, phone, internet etc) Do you have your WFH setup? Can you work with your boss and team for projects that you can deliver remotely?

– while tech companies struggle with the impact of COVID-19 and travel restrictions, employers are asking staff to work-from-home. Employees who aren’t used to working from home may find it unsettling. You should plan to setup infrastructure (room, phone, internet etc) Do you have your WFH setup? Can you work with your boss and team for projects that you can deliver remotely? Scan for Innovations – Remote working tools and technologies, enabled by access to high-speed networks are already prevalent in the corporate world. Laptops with secure VPN, video cameras, web-based file sharing and cloud based tools are used widely. Continue to watch for and learn about innovations in this space.

Bottomline: An oft-repeated advice we hear from experts during the current crisis is to “stay calm.” While we should calmly assess the impact of the unfolding saga, this is not the time to be a deer in the headlight. “Stay calm, assess the impact, and be prepared to act” is more like it.

Guest post by Mohan K. The author is a technology executive and Enterprise Architect. He regularly contributes to myDigitalStartup.org and other forums