The New Recession
Every action has an equal and opposite reaction. Indeed, this is Newton’s third law, but it also is a very profound statement on its own. Even as the world has come back to a measure of normalcy after grappling with the COVID crisis, we find ourselves dealing with yet another “reaction” to this phenomenon: the new recession.
So, what could we say are the major contributors to this situation?
Of course, the pandemic had caused the initial slowdown. But then, the markets picked up swiftly. It stands to reason then that an event as severe as the Ukraine-Russia conflict would trigger the situation we currently find ourselves in. After all, it is as politician Neville Chamberlain quoted, “No one wins in a war.”
The effects are being felt even in the software industry. Inflation in various sectors has now found it’s way to the IT sector. The current predicament is quite strange. The job market is in great shape, as unemployment remains near a historic low. This contrasts with conventional recessions, where jobs decline as revenue declines. IT companies currently are sitting on some of their highest profits yet, which allows for better employee retention. This could probably imply then, that there are more jobs available than there are resources to fulfil those jobs. A unique situation, isn’t it?
One wonders what is holding the markets back from doing business as usual. The hesitation needs to be analyzed and one hopes that things will look up in the near future. For small to mid-sized companies though, the situation remains unchanged as far as the long term is concerned. Sure, they are all feeling the short-term effects of the slow-down, but in order to regulate spending, smaller organizations will find themselves at an advantage eventually, due to the competitive price point they provide, as well as the level of personalization offered.
The adaptive approach being implemented by rapidly growing companies results in a more sustainable growth model, thereby tiding them through harder times.
To sum up:
• The reduced competition owing to a recession actually enables people to set a foothold in the market.
• Customers are more discerning these days. Therefore, organizations should be able to provide information that satisfies their needs.
• You can access a talented pool of experts for your business.
At IncubXperts, we too, are keeping a close watch on the situation as it develops and aim to do our part to ensure the continued growth of the organization and the customers we do business with. During this time, our mantra is simple. “Do what we do the best”.
Let’s all do our part to ensure a timely recovery from the slowdown and continue the progress!