The option of working from home is not working for local IT firms, as there has been a significant drop in productivity.
On Thursday, stakeholders of the Goan IT industry said that ‘work-from-home’ is not a viable option due to a significant decrease in productivity.
According to the local industry, although the IT firms latched on to the ‘work-from-home’ option at the beginning of the nationwide lockdown only a few among them could achieve productivity of 80 per cent.
The industry has blamed the drop in productivity to poor Internet connectivity and frequent power outages.
“The new culture is challenging as employees do not have end-to-end net connectivity in their respective locations. Moreover the computer systems of the employees do not have the required capability,” Goa Technology Association president Mangirish Salelkar explained, adding that in the absence of seamless connectivity work suffers.
GTA members conducted a survey on the COVID-19 impact on local companies. Survey findings have revealed that 95 per cent of the units have suffered loss in business with more than half of the units estimating revenues to decline by 40 per cent in the current financial year.
About 60 IT companies out of around 100 companies in the state were covered in the survey.
“Goan IT companies are facing the problem of cash flow presently, as clients are differing payments,” Salelkar disclosed, adding that international as well as domestic clients are holding back payments due to the pandemic crisis.
To offset the loss in income, the local IT units have started bringing about salary cuts. About 74 per cent of the units covered in the survey introduced the pay cuts as an initial cost-cutting measure.
According to the GTA survey, the pandemic is likely to result in job losses in the state. Furthermore local companies would be unwilling to hire.
“It will have a huge impact on new recruitments from engineering colleges in the state,” the GTA reckoned.
To mitigate the distress caused by the pandemic, the Goan IT industry is seeking low-cost loans at two per cent as well as fastrack permission to ISP to provide connectivity and ensure zero downtime.
The GTA members had an online meeting with the state IT Minister, the IT director and the IT secretary on Thursday to apprise them of the current industry situation.
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Source:: The Navhind Times