Editor’s note: Elizabeth Sullivan-Hasson is research analyst at TrustRadius, an Austin, Texas-based information services firm. This is an edited version of a post that originally appeared under the title, “How the tech industry has handled COVID-19.”
Over the past few months, TrustRadius has collected and analyzed thousands of data points around organizations’ responses to the COVID-19 pandemic. This post presents highlights from B2B research performed by TrustRadius in partnership with tech industry analyst firm IDC. The full report can be found here.
Together, TrustRadius and IDC looked “under the hood” to learn how companies are balancing their budgets, seeking new business opportunities and handling employee productivity in these uncertain times.
The tech industry's response to COVID-19
Of the almost 1,000 business professionals we polled, 61% thought their organization had responded to the pandemic very well. For executives and business leaders, it should be a relief to hear that only 16% of respondents thought their organization had not responded well to the changes brought about by the pandemic.
Of the respondents who said their organization had responded to the pandemic poorly, one out of five thought their company could have handled layoffs or furloughs better. On the other hand, of the respondents who said their company had responded to the pandemic well, about three out of four respondents felt their organization had handled decisions about health and safety and communications well.
Reduction in revenue leads to reduced spending
It should come as no surprise that a large percentage of respondents (61%) said their organizations have seen a reduction in revenue these past few months. About 54% of respondents reported that their organization has reduced their spending.
Pivoting business operations
Along with shifts in revenue and expenses, many tech companies have changed their 2020 product roadmaps in response to the coronavirus pandemic. Sixty-three percent said they were either pivoting business operations or offering new products/packages.
Sixty-one percent of our audience of business professionals said their organization has added new projects to the 2020 roadmap due to impacts from the pandemic. The organizations that responded “no” likely didn’t have the bandwidth or resources to add new projects, since most of their energy was being devoted to keeping their head above water.
Employee productivity while working from home
Concerns about employee productivity and wellbeing have troubled executives throughout this transition. However, our research supports that employees are actually more productive at home during the COVID-19 pandemic. A majority (57%) of business professionals surveyed reported they are more productive now, while working remotely, than they were before the pandemic. Only 17% said they are less productive.
These results are fascinating not only because they help debunk concerns about employee productivity while working from home, but because remote working environments are full of distractions and challenges for many people. Forty-five percent of respondents said they have personal distractions in their WFH space, while 42% have background noise and 32% have children to take care of.
Responding and recovering through a pandemic
Based on this research, we’ve learned a few key things about how the tech industry is responding and recovering.
- In some areas, tech companies have responded well. So far, 62% of business professionals think their organization has handled planning for the future well. As the pandemic continues to spread around the world, companies should keep an ear to the ground and be ready to respond to changes in their marketplace.
- The pandemic presents opportunities for growth too. For a majority of companies (63%), changes stemming from the pandemic also present opportunities to pivot business operations or expand their offerings. In fact, 61% said their organization is planning on adding new projects to their 2020 roadmap due to the impacts of COVID-19.
- Employees are more productive than you think. While tech leaders have been wary of a giant slump in productivity as a result of new remote working environments, these fears have not been born out. Employee productivity has largely not suffered as a result of the switch to working from home.
- Tech leaders should stay up to date on what we’ve learned. The global pandemic is far from over, so companies should use the information and insights we’ve gathered so far to help prepare for the months ahead.