Expectation vs. Reality – How COVID-19 Changed the IT Labor Market

Expectation vs. Reality - How COVID-19 Changed the IT Labor Market

Whether people like to admit it or not, COVID-19 has changed the way we work, socialize, and live our lives. Over a million deaths have already been attributed to the virus, more than 60 million cases have been recorded, and even more lost jobs, businesses, and learning opportunities. In the years to come, experts believe that many more will lose their jobs and fall into poverty. The wage inequality is only expected to get wider as well.

Third-party software testing services like those provided by QAwerk offer corporations some way to properly test programs and applications without the need to hire testers on regular employment contracts. Though most likely affected by the pandemic as well, the skilled professionals working for third-party service providers may be more used to delivering and performing their services remotely.

While COVID has affected industries all over the world, we’re here to talk about its effects on the IT labor market specifically. Businesses may have business continuity plans, but evolving pandemics that span months or possibly even years aren’t usually planned for. How has COVID-19 affected the IT industry, and how much more of an effect will it have over the IT labor market in the years to come?

Issues businesses face in the IT industry

One thing we know is that no one is sure just how long COVID-19 could continue to affect and disrupt our day-to-day lives. But as far as businesses are concerned, all of these canceled events and strict travel restrictions could mean fewer chances of developing business opportunities and interacting with clients.

Businesses should think about utilizing modern communication tools and cross-functional teams managed by a central leader to help businesses stay afloat and gain traction even in these unsure times.

Recruitment may slow down for skilled workers and gig workers due to decreasing applications associated with increased risks for these workers. As for those working at home or are hired to work at home, cyber-security attacks become a more real issue.

Support for remote employees should always be in place, so skeletal workforces could remain relatively safer onsite with fewer people to interact with. Communication is even more important now when physical interaction should be limited even within the closest and most interactive members of the team.

Impacts on the IT industry and labor market

Between supporting remote workers and the workload they have on-site, many IT workers are now forced to work heavier workloads when companies aren’t too keen to hire more professionals. IT job seekers may have already noticed that there are fewer job postings this year than last, and most job postings now are more focused on hiring those with skills and roles associated with cloud computing, AI, and data science.

This means that there are still job opportunities for IT professionals, even though the demand has obviously been affected. Many job interviews and job offers may have been put on hold, but more than many other professionals, those working in IT are faring well in comparison.

Start-ups are more heavily affected, of course. Amidst the outbreak, SME owners would consider paying redundancies to keep the businesses from going under. More than 75% of small start-ups have slowed down or canceled recruitment. This is a smart move as it allows the owners to gauge just how profitable their businesses could still be, and how much money they still have in the coming years or months.

Those who provide third-party IT services are affected too, but this could actually go either way. Many companies will definitely try to cut down on expenses and look at these third-party providers as possibly something that their own IT teams can replace. Other companies may look at their IT teams and decide to just outsource as it may be cheaper and faster to just get infrastructure, cloud services, and testing services from a third-party provider.

Considering third-party and offshore service providers

Skilled contractors and third-party service providers make up an important part of development teams. Their flexible and quick service delivery can make the difference between the success and the downfall of programs, websites, and applications. The demand for these project-based service providers isn’t likely to change because of these reasons.


Masri serves as the Chief Content Editor at BestKodiTips. With three years of experience, she excels in creating technical content, focusing on how-to guides, Android and Kodi tutorials, app reviews, and addressing common technological challenges. She ensures to stay abreast of the latest tech updates. Outside of work, Masir finds pleasure in reading books, watching documentaries, and engaging in table tennis.

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