"The SH sector can help companies get through the pandemic" - COVID vs business report, SoDA (2020)
Software Development Association Poland (SoDA) report on the effects of COVID-19 in the IT industry has been published. The presented conclusions relate to 3 areas - sales, HR as well as business and economy. The survey was conducted in seventy-four Polish technology companies associated in the Organisation.
In terms of the IT industry, the situation of Polish software houses is optimistic and is defined as stable. This applies to many aspects such as financial liquidity, results and operational activities. Technological companies operating in Poland quickly adapted to the changed economic realities.
However, the report indicates that despite the stable situation in the Polish IT industry and moderately positive moods, around 12% of companies after the first half of the year reported revenues lower than 35% of the expected annual turnover after the first half of the year. In general, the IT industry, most companies expect to make up for a weak Q2 in the second half of 2021.
The pandemic and the related economic crisis acted as a lens, thanks to which the importance and difficulties faced by the IT industry in Poland are clearly visible. Observation of the development of economies of other European countries clearly shows that at present the knowledge-based economies are doing best. In such cases, the industry is particularly important IT, which, as can be seen from the results of the report, is also successfully defending itself in Poland against the crisis caused by the COVID-19 pandemic - Konrad Weiske, President of the Management Board, SpyroSoft, Vice President of SoDA.
The pandemic also affected changes in the area of HR and personnel. We observe a reduction in the number of recruitment for junior positions and an increase in the demand for experienced specialists. A positive conclusion is the fact that the pandemic in most cases did not reduce the wages of the existing employees. Most of the companies that participated in the SoDA survey showed employment growth even in the critical second quarter of 2020. The median increase in the number of employees for this period was 5%.
The most dynamic changes can be seen in the sales and development departments that were most affected by the pandemic. Many software houses have suspended cooperation with industries such as travel, hospitality or heavy industry. The COVID-19 crisis has in turn accelerated the expansion of e-commerce. The report also clearly indicates that in the coming months there will be an overall increase in retail sales regardless of the region.
The pandemic has shown many companies that they can operate effectively remotely and thus lessened concerns about finding partners working elsewhere. On the other hand, businesses are now also trying to catch up in their digital transformation. As a result, the IT services market clearly revived in the last quarter of this year - Paweł Pustelnik, Managing Director at Future Processing.
For detailed data, please see the attached report.
About SoDA
Software Development Association Poland (SoDA) is an association of Polish technology companies that produce software and provide a wide range of outsourcing IT services to clients all over the world. The organization was founded in 2018 and currently brings together over 110 companies with Polish and foreign capital operating throughout the country, employing over 15,000 employees in Poland. SoDA's mission is to integrate the Polish IT industry and its representation and activities for its development on foreign markets. SoDa is supported by ITCorner and Klaster IT.