THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA
The crisis caused by the Covid-19 pandemic affected almost all organizations, regardless of the industry in which they operate. The new working conditions created to protect the health of all employees required a new mindset and a ‘switch’ to more digitalized operations. Many organizations had to a...
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Faculty of Economics, University of Tuzla
2022-05-01
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| Series: | Economic Review |
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| Online Access: | http://er.ef.untz.ba/index.php/er/article/view/35 |
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| author | Julia Perić Ružica Stanić |
| author_facet | Julia Perić Ružica Stanić |
| author_sort | Julia Perić |
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The crisis caused by the Covid-19 pandemic affected almost all organizations, regardless of the industry in which they operate. The new working conditions created to protect the health of all employees required a new mindset and a ‘switch’ to more digitalized operations. Many organizations had to adapt or even completely change their business model in order to survive and save jobs. Since digitalized operations were already in place in the IT industry, it seemed that organizations within it had an easier adjustment process to the new pandemic conditions. But have IT companies survived the pandemic as unscathed as it seemed?
The purpose of this paper is to examine how Croatian IT companies mitigated the effects of Covid-19 and how they managed their employees during this crisis. This paper examines the impact of the pandemic on employees in the IT sector and analyzes how leaders managed to ensure the psychological safety of their employees under these uncertain conditions. In addition, this paper answers whether and to what extent IT companies had to adapt their business models and what other challenges (cybersecurity, new platforms, etc.) they had to respond to. Using questionnaires and semi-structured interviews, managers and employees of ten IT companies operating in Croatia were surveyed. It was found that most IT companies experienced a short-term decline in revenue during the pandemic. The results of the research showed that companies in the IT sector also organized remote work, but unlike other sectors, employees in the IT sector were more likely to permanently switch to remote work, as they were more satisfied, motivated and productive when working remotely. Moreover, adapting to the new working conditions led IT companies to accelerate digitalization and reduce operating costs without reducing the quality of services. This research can serve as an example of good practice for all organizations looking to digitalize their business and respond to potential new, unexpected crises.
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| format | Article |
| id | doaj-art-b211c9d7943a497ba2072d84b788b167 |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2022-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
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| series | Economic Review |
| spelling | doaj-art-b211c9d7943a497ba2072d84b788b1672025-02-10T00:30:48ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2022-05-01201THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIAJulia Perić0Ružica Stanić1Faculty of Economics in Osijek, J. J. Strossmayer University of Osijek, CroatiaFaculty of Economics in Osijek, J. J. Strossmayer University of Osijek, Croatia The crisis caused by the Covid-19 pandemic affected almost all organizations, regardless of the industry in which they operate. The new working conditions created to protect the health of all employees required a new mindset and a ‘switch’ to more digitalized operations. Many organizations had to adapt or even completely change their business model in order to survive and save jobs. Since digitalized operations were already in place in the IT industry, it seemed that organizations within it had an easier adjustment process to the new pandemic conditions. But have IT companies survived the pandemic as unscathed as it seemed? The purpose of this paper is to examine how Croatian IT companies mitigated the effects of Covid-19 and how they managed their employees during this crisis. This paper examines the impact of the pandemic on employees in the IT sector and analyzes how leaders managed to ensure the psychological safety of their employees under these uncertain conditions. In addition, this paper answers whether and to what extent IT companies had to adapt their business models and what other challenges (cybersecurity, new platforms, etc.) they had to respond to. Using questionnaires and semi-structured interviews, managers and employees of ten IT companies operating in Croatia were surveyed. It was found that most IT companies experienced a short-term decline in revenue during the pandemic. The results of the research showed that companies in the IT sector also organized remote work, but unlike other sectors, employees in the IT sector were more likely to permanently switch to remote work, as they were more satisfied, motivated and productive when working remotely. Moreover, adapting to the new working conditions led IT companies to accelerate digitalization and reduce operating costs without reducing the quality of services. This research can serve as an example of good practice for all organizations looking to digitalize their business and respond to potential new, unexpected crises. http://er.ef.untz.ba/index.php/er/article/view/35Covid-19IT sectorremote workmanaging employeesdigitalization |
| spellingShingle | Julia Perić Ružica Stanić THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA Economic Review Covid-19 IT sector remote work managing employees digitalization |
| title | THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA |
| title_full | THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA |
| title_fullStr | THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA |
| title_full_unstemmed | THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA |
| title_short | THE IMPACT OF COVID-19 ON THE IT SECTOR: WAS THE ADJUSTMENT AS EASY AS IT SEEMED? THE CASE OF CROATIA |
| title_sort | impact of covid 19 on the it sector was the adjustment as easy as it seemed the case of croatia |
| topic | Covid-19 IT sector remote work managing employees digitalization |
| url | http://er.ef.untz.ba/index.php/er/article/view/35 |
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