Coronavirus: Guide to New Business Opportunities in 2020 [Changes the IT Industry May Experience]
What is happening to companies, including software development vendors, during the COVID-19 crisis?
Coronavirus has turned the world upside down and caused a lot of shifts in economics.
Small, medium, large businesses are facing a lot of challenges. You must either modernize your business to keep afloat, or go under.
Some companies have already stepped over the threshold of bankruptcy. Others, however, are reaping the benefits.
Are you wondering what to do with your business? Thinking about a new project idea? Or, looking for a reliable tech partner?
We’ve conducted thorough research to help you decide on the best course of action. This article sheds some light and gives practical advice for businesses:
- key news and statistics regarding the economic downturn
- industries that are on the rise during coronavirus
- products than gain the most user traffic
- how custom software development companies are coping with COVID-19
- what pitfalls to expect from IT vendors and how to overcome them
- what to do with your business and what steps to undertake
Let’s dive right into the juicy stuff!
Hot Industries During the Coronavirus Outbreak
COVID-19 has divided companies into winners and those that are doomed to fall behind.
Offline business is struggling the most. These firms need to either quickly refocus and shift to digital, or shut down all operations.
The global economy won’t come away unscathed. Industry leaders have become losers, and the losers - well, it’s the other way around.
Check out the following statistics! The consequences will be tremendous.
- coronavirus will bleed $820 billion in revenue from the business travel sector
- the hotel industry is losing $1.4 billion in revenue every week
- the retail industry will lose $430 billion in revenue over the next three months
- the global economy will lose over $2.7 trillion
- hackers attacked users worldwide about 150 million times
However, there is another side of the coronavirus influence that instead has winners. Some companies have managed to cut through the negative effects and have even gained positive outcomes.
Interested in how to become one of the lucky ones? Continue reading this guide to find recommendations and solutions for what you can do next.
1. Delivery [key growing segment]
Where human laziness couldn’t do the job, COVID-19 managed to create a breakdown.
Consumers staying locked in their homes. However, there is still a need for groceries. This dilemma has caused a spike in the popularity of on-demand delivery apps.
TechCrunch shared its insight into the current state of affairs.
Due to the coronavirus crisis, Walmart Grocery and Shipt opened new business opportunities. Downloads of their apps increased by 218%, 160%, and 124% in only a month.
Amazon is also benefiting from COVID-19. The company has seen an increase in delivery services across all of its product categories. The retail giant has even started to prioritize orders based on their necessity.
Do you also see the business opportunity in starting a delivery service? Or, do you possibly understand what items or services people are lacking in the current situation?
MLSDev has hands-on experience in the development of delivery services.
GoPuff is our flagship project in on-demand delivery that operates in more than 90 locales, across 20 US states. The service supplies clients with essentials, groceries, electronics, and other necessities 24/7. GoPuff continues to expand its presence in the USA and even offers “non-contact delivery.” The company is helping the country with its COVID-19 initiatives.
You can get more insight from the dedicated GoPuff Case Study.
Or, simply get in touch with us for a free project estimate. You can tell us about your project, and we will tell you all about the procedure and how much it will cost.
2. EdTech [streamlines online education]
UNESCO states that 516.6 million students can’t visit educational institutions. Just imagine it this way - this is about 91% of the world’s student population.
Even more, adults are bored staying at home. They have a lot of free time on their hands to learn something new.
The pandemic is testing eLearning and its capabilities. The Chinese company Yuanfudao illustrates this interest in online education.
The announcement of free online courses put its system under unprecedented stress. The system crashed as over five million attempted to access it at the same time. The system stayed down for two hours. Yuanfudao has raised $1 billion in investments, as interest in its platform continues to grow.
So, why not start a digital project in the EdTech area?
3. Pharmaceuticals [industry in demand of new initiatives]
Competition and demand have never been so tense within the pharmaceutical industry.
People are panic-buying a lot of medicine. In Australia, the government has even put restrictions on certain drugs.
If you were to invest in vaccine creation and distribution, you could win the lottery. Don’t you agree?
A few companies have advanced their studies - Moderna is one of the most prospective leaders. The company has already begun human trials of a prospective vaccine for coronavirus.
Are you interested in investing in the pharmaceutical arena? Do you want to benefit from industry digitalization?
Our team has extensive experience in developing a digital pharmacy platform. The project’s goal is to provide a brand new consumer experience of placing an order and receiving medicine in the comfort of one’s own home.
The platform is innovating the pharmaceutical market via tools like chatbots, online video consultations with pharmacists, etc. As well, the system has revolutionized the pharmacy delivery system.
Further details are under NDA. If you want to learn more about how we can help you innovate the pharmacy industry, feel free to contact us.
4. Streaming, Entertainment, & Gaming [solutions with most the traffic]
The entertainment industry is on the rise due to the need for social interaction. Even certain internet providers have failed to withstand the load created by streaming solutions.
It is worth noting that, as a result, the European government asked Netflix and YouTube to lower their video quality. The solutions complied!
Online gaming is also going through an uptick, as companies have reported an increase in demand. YouTube game streaming has spiked by 15% already.
Interested in knowing juicy details about the development of video streaming services?
Check out the in-depth article How to Create a Video Streaming Website: 10-Step Guide with Business and Technical Parts. You can check out our experience in creating video-streaming services. You can also learn how to develop a service to rival Netflix and overcome any difficulties on the way.
5. Healthcare [needs modernization & digitalization]
The healthcare industry is under the most pressure.
Hospitals cannot withstand the flow of COVID-19 patients. There are so many of them that the healthcare industry is at risk of failing. This is not to mention that doctors don’t have any time left for patients with other illnesses.
Many companies have started to release innovative solutions that aim to address the issues.
Baidu launched the Fight Pneumonia in-app channel, which aims to keep the public up to date with information on the pandemic. The platform is free for COVID-19 patients in need of professional help. Thousands of doctors are answering millions of inquiries from all over China.
The MLSDev team has developed dozens of healthcare projects. We know all the ins and outs of healthcare app development.
We deliver results that are up to your expectations and are ready to take on new projects. Check out a few examples in the image below.
Idana platform - helps to perform anamnesis on a patient before their actual visit. Due to the project's specifics, our team offered to develop a web progressive app that was compliant with the IEC 62304 standard used for medical device software.
Doctorate app - a doctor recommendation platform for Saudi Arabia. The app helps users choose and book a physician based on ratings and reviews from other users.
For more inspiration and top products, visit our page dedicated to healthcare app projects.
Got an idea for a healthcare project?
Get in touch with us and receive expert feedback about your healthcare project concept. Our Business Analyst and Software Architect are ready to elaborate on your idea right away.
6. Productivity Tools [organize teamwork effectively]
Working from home is the new normal.
Productivity and communication tools have certainly come in handy. Thanks to these tools, millions of employees have managed to create efficient working environments at home.
The popularity of video conference and chat apps is rising - and so are their stock prices.
Zoom is a great example. Before the outbreak of coronavirus in January, Zoom’s share cost was under $70. Right now however, the price of its shares is over $150, which gives the company a market value of $42 billion.
7. Biotechnology [lucrative & life-saving sector]
Biotech companies could become the real saviors of the world.
The need for biotech solutions will grow in the future. These companies are trying to develop COVID-19 vaccines and therapies as quickly as possible.
There are a lot of companies working on a coronavirus treatment. These include CalciMedica, EpiVax, Inovio, and universities all over the world.
Victory waits for the company that can get FDA approval for their medicine. Their stock will skyrocket.
Our team has experience working with Enterprise, a large supplier of medicine and high-tech medical equipment to laboratories and clinics. This biotech monopolist in the Dominican Republic addressed us with a request to help them innovate with software app development.
The project's goal is to digitize the entire medical process - the work of laboratories, clinics, and medical personnel - as well as to provide patient care services.
If you also want to start your app initiative in biotechnology…
8. Retail [need online distribution models]
The retail industry is in the middle of massive disruption. The COVID-19 situation is not the same for everyone. Offline locations are closed, while eCommerce is generating reasonable revenue.
Amazon is one of the most vivid examples. The company will not comment on any rumors, but 100,000 new job openings speak about the rise in demand.
Consumers are only buying necessities and food. Luxury products, clothes, and accessories are failing to keep their interest.
Want to open your own eCommerce website?
Check out the article How to Build an eCommerce Website from Scratch & Start Selling Products Worldwide. Find the step-by-step process to create an eCommerce website inside. After reading, you will know how to choose the right technologies.
9. Telehealth [projects worth investment]
Telemedicine apps are witnessing a huge spike in usage during the coronavirus crisis. Overcrowded hospitals impose a risk to health. Thus, patients need to consult with doctors from the safety of their homes.
Coronavirus has increased the number of appointments for PlushCare by 70%. Amwell has seen a 158% increase in appointments all over the USA. In Washington state alone, the increase has been 650%.
Do you want to help millions with your telemedicine application?
You can check out more details in the guide: Telemedicine App Development: Trends, Challenges, Features, and Cost.
Our team has experience in developing telemedicine projects for online consultation with therapists or other healthcare providers. In-app video, text, and voice communication functionality are things that our team can help you build.
The coronavirus pandemic has brought a lot of emergencies for all business spheres.
These days, you need to undertake the steps toward business digitalization. You either go online, where all the potential customers are, or go under.
Trendy Digital Products During COVID-19
How do people survive coronavirus?
They definitely don’t live by bread alone.
COVID-19 has created a 180-degree turn in customer behavior. The resulting disruption has brought new winners into the spotlight.
Let’s investigate who is experiencing success. This can help you make the right choices in your own business strategy.
This video conferencing solution is already reaping the benefits of the shift to WFH. In 2020, the company’s sales and share prices are already up by over 50%.
Another popular solution for office communication that is also growing. On March 10, the number of users that were using the program at the same time passed 10 million. By March 25th, the number of concurrent users reached 12.5 million. However, Slack has kept the total number of active users secret.
- Microsoft Teams
During the coronavirus pandemic, this Microsoft service is also seeing significant growth. In a week, the number of active users increased by almost 40% - from 32 million on March 11th, to 44 million by March 18th. Microsoft is very encouraged by this current popularity; to please customers, it is going to roll out some platform improvements soon.
This service by Yahoo has experienced a 3% increase in shares. RingCentral saw growth in app downloads by 300%, month over month. The use of this solution for online meetings increased by over 100%, and by over 70% for messaging.
Remote Learning Platforms
Thanks to the surge in online education, many companies have really taken off. A great example is GSX Techedu, a Chinese educational platform. Throughout the coronavirus outbreak on its native soil, the price of its shares tripled in value.
The entire world is streaming video now more than ever. The revenue of giants like Netflix, Disney+, Hulu, and HBO continues to skyrocket.
As of the middle of March, the number of Netflix app downloads grew by 100% in Italy, and by 50% in Spain.
Netflix’ competitors don’t lag far behind, with 29% of all new subscribers going to Disney Plus and 21% to Hulu. Due to the coronavirus shutdown, HBO has seen a 40% growth in streaming volume.
The online-only UK supermarket Ocado is a great example of a COVID-19 winner. The supermarket had to suspend new food orders for some time to clear their backlog of deliveries. Even now, the supermarket is struggling to withstand the high load of orders.
Home Fitness Apps
Jogging and gym workouts are no longer an option. This shift in behavior caused a huge demand for fitness apps that help people exercise at home.
Peloton, the exercise equipment and media company, saw a 13% spike in share price due to this rising demand. Nike Training Club has offered free access to all premium workouts; users can use it for the duration of the coronavirus pandemic.
In general, small, medium, large businesses are struggling to keep customers. Organic traffic is down in most industries.
- News & media sites - saw a huge traffic increase. Many of them work on the subscription-based model.
- Food industry - coronavirus has positively affected online food retailers. Consumers now prefer to shop for groceries online.
- Healthcare - another industry that has seen a spike in interest among users. Companies in this segment have seen an increase in traffic by ~18%.
- Travel industry - this area is witnessing the biggest drop in interest ever. Airlines are likely to lose over $35 billion in gross operating revenue every month in the 3rd quarter of 2020.
Today, you either belong to the essential need segment or fail to strike interest in customers. A drop in visitors results in a drop in sales.
On the contrary, the impact on eCommerce websites has not been as drastic, with less than a 5% drop in visits.
How Custom Software Development Companies Can Survive During COVID-19
What are some changes in the IT industry these days?
How can you choose a reliable IT vendor for software development during the coronavirus crisis?
Despite the idea that the IT field can have a minor negative impact on revenue drop. In reality, software development companies rely on their clients and their businesses. The IT industry is not an exception in this economic downturn.
We have 10 years of experience and a wide market presence based on the projects completed for clients from the USA, Europe, and even the Gulf Cooperation Council countries.
Our team wants to share the light with you on what is happening in the IT field. This is not the first time we have met a crisis and are aware of the potential outcomes of the situation.
If you decide to search for a capable software development company offshore, this information will warn you of potential pitfalls. You can use said information to help make your decisions.
Let’s get straight to the point.
Many IT vendors state that their clients have put their mobile app and web projects on hold. In fact, 30% of companies report that the number of projects has fallen by 30-40%.
Companies have put their specialists on the “bench” (when they pay salary while there is no project for this employee). The number of employees without projects has increased for 45% of IT firms.
Generally speaking, tech startups are already closing their operations since their position was not yet stable or confident before the crisis. Within mid-size development companies, everything is more or less stable.
Even though clients have put their projects on hold and have reduced their development expenditures by 20-30%, stable and trusted IT outsourcing companies do not offer clients discounts on their services or any other sort of perks.
On the contrary, there are lots of software development companies that give out untruthful information and fake expertise in order to survive the COVID-19 crisis.
As well, many software development teams have started to cut rates and offer discounts. Some are declaring that they are making advances to their clients in order to support their projects in harsh times and share responsibilities.
However, just think logically. What business exists without profit?
Cutting costs and lowering rates or offering discounts on development services may hide particular changes inside the company. Cooperation with companies that do this could turn out to be a waste of time and financial resources.
In many cases, IT vendors may assign middle, or even junior, programmers instead of senior specialists on your project. As a result, senior specialists lose jobs since their salaries are the highest. Many IT companies just cannot keep these professionals.
Some IT firms, in order to withstand the coronavirus crisis, will agree on all the terms and conditions mentioned by the client just to get an agreement signed. They do not contradict. They do not challenge. They do not disagree. They do not question your business idea.
This way, they can offer you lower rates on their services. However, this may result in bad code quality, poor solution architecture, and the potential malfunctioning of your digital product.
All in all, you can now witness a few distinct trends among software development companies.
- IT firms are closing down
Small companies are less prepared for the current crisis. They don't have the financial cushion to survive. These small companies are shutting or scaling down. Some have even putt their employees on unpaid leave for an indefinite time.
- Letting go of senior developers
The situation with big software development companies is a little bit different, as they usually have enough financial cushion to continue working for a while.
Even still, these companies have also been forced to take action to cut down expenses. As mentioned, software development companies are letting go of senior developers. Many have chosen to continue working with junior specialists, as their employment costs much less.
- Continue working without changes
There are unicorns that have continued working without changes. These software development firms use effective management solutions and have enough financial backup. These teams keep the same level of IT services provided and have organized an effective cooperation process with their clients to deliver the expected results.
With projects on hold, good development companies have resources to take on new tasks. Thus, it is a great opportunity to hire the best vendor for your digital business idea and mitigate the risks.
How can you distinguish between who is lying and who is not?
During the COVID-19 crisis, pay attention to the following aspects as main indicators.
- Look at the number of employees and how that number has fluctuated over the last few weeks
- Find out how long the company has been on the market
- Look at the company’s portfolio (make sure that they have a few big projects in development)
- Ask if a team has long-term projects lasting 5+ years
- When discussing business, ask about the levels of seniority inside the company
- Ask how the company intends to cope with the current problems
- Study how the company works during the quarantine
Just stay cautious during the search for a software development vendor. Have the following points in mind!
1. Agencies that let go of senior staff are trying to attract clients with special offers. In reality, they won't lower their prices. They will sell you junior developers for the price of senior ones.
2. With reduced prices comes a lot of danger. You could get low-quality code and solutions that won’t withstand high loads. Often, junior developers can't deliver results up to the initial requirements of your business idea.
All in all, quarantine enforcement resulted in prompt decisions to organize the remote work of IT professionals and teams.
For your information - the process of our work has not changed!
The crisis has hardly impacted MLSDev since our specialization in healthcare, on-demand solutions, and video-streaming services is in high demand now.
- all of our specialists, without exception, work remotely
- all of our working processes are well organized and function like clockwork
- all of our projects are in their development phases and are moving toward release as planned
- all of our specialists stay at good health
- all in all, we are working as usual
How to be a Winner During Coronavirus in 2020
The outbreak of COVID-19, as with any other crisis, means that most organizations have needed to restructure and modernize through technology.
The image above depicts McKinsey’s 5-step recovery plan that your company could also undergo.
Right now is not the time to be idle. The COVID-19 crisis is a time for quick action. Businesses need to quickly address issues that arise with employees, supply chains, and customers. You need to identify the main challenges, create a plan of action, and ensure business continuity.
Identify and rank key risks based on their business impact. During this step, it is important to work out possible solutions. For example, allocate financial resources and pay attention to the opportunities for further growth.
Prepare a detailed plan to get the business back on track. It will become clear which challenges you will meet. You might need to restart the supply chain, attract clients in a new way, or something similar.
Analyze the changes in your business and customers. COVID-19 has already shifted consumer behavior by sending potential customers online.
A wise strategy is to move your business online. As well, you should develop new innovative solutions and digital products. Nothing should stop you in the rush to retain loyal customers, and even gain new ones, in this new reality.
You should be ready to review your strategy regularly. The situation with the coronavirus crisis won’t be static. You will need to be quick with changes to every rapid shift that might happen in the future.
Coronavirus has changed the world forever. The crisis is reinventing industries and shaking the global economy. The new reality is already making new rules and requires new ways to grow your business.
To sum things up, here is what COVID-19 has brought:
- Travel, advertising, retail, and mobility are under the biggest stress ever
- Social distancing has sent consumers online
- The healthcare industry needs quick modernization
- Users are searching for telemedicine app services
- Solutions for productivity, communication, conferencing, and WFH are in demand
- Streaming, gaming, food delivery, health, and eCommerce are outperforming the market
- Stay cautious of dishonest IT software development vendors giving untruthful info
- Reimagine your business with new innovations and initiatives to become a winner
What are the possibilities right now?
Coronavirus has created a lot of opportunities for startups.
The time is just right to make strategic decisions for the future, like moving forward with digitizing your business and starting to develop your mobile application.
You could think about initiating your project in one of the following domains.
- On-demand delivery
- Streaming services
This is a time when everyone is online, searching for and trying new things and solutions either to learn, order, purchase, or, of course, look for superior medical service.
While many companies are cutting back, companies that double down will win in the long run.
Are you ready to bring your business up while your competitors are lying low?
This is the golden time to work productively while your competitors are lagging behind. Our team can become a reliable partner to implement your ideas, digitize business, help gain users, and scale your project.
Let’s get in touch and discuss how we can offer end-users an innovation. By uniting your creative concept and our technical expertise, we can create a great product that clients will enjoy using.