Tracy Watson 13/03/2020 #News 7 min read The recent outbreak of Coronavirus has caused widespread panic across the world and has disrupted lots of business processes along the way. This includes broken supply chains, a halt in manufacturing, and decreased demand for merchandise. Since the Coronavirus is having such a massive impact on companies across industries, we would like to present an overview of the effect it is having in the business world and software development in particular.The Impact of Corona Virus So FarOne of the major indicators of how well the economy is doing is the stock market. Recently, we saw a 10% decline in the S&P 500. In fact, the selloff was so severe that Goldman Sachs predicted that all of the companies collectively making up the S&P 500 would not make a profit this year. A big reason for such a stark outlook is just how much the United States relies on China as a supplier. This is particularly true in the world of technology, where most smartphones, tablets, and other gadgets are assembled in China.Microsoft has recently reported that the Coronavirus is slowing down the production of its Surface laptops while Apple has closed all 42 stores in China. In fact, Apple is projecting lower than planned sales numbers for the first time in 16 years, mostly due to declining sales in China. Now that we know about the impact the Coronavirus has had let’s look at what the future holds.Will the Affected Businesses Be Able to Recover?The is a lot of optimism on Wall Street and the business world at large that this will blow over and things will get back to normal. Tim Cook, the CEO of Apple, said that he is already observing things getting better, specifically in China. Volkswagen also said that its car manufacturing is in line with the numbers reported last year.A lot of economists are predicting that the Federal Reserve and other central banks will cut interest rates to make lending cheaper and easing some of the burden on business trying to recover. This will also provide additional incentives for consumers to start spending more and for businesses to invest as well. Some analysts are predicting as much as a half-percent cut in the current interest rates. However, first, we need to weather the storm and reduce the economic fallout of the Coronavirus so far.How has Software Development Been Affected?The software development industry is very globalized, with many industry giants having R&D facilities in areas that have been the most affected or are under quarantine. The first problem this causes is a limitation on travel. A lot of US companies outsource their software development and regularly travel to the service provider’s location for a face-to-face meeting. Thanks to modern technology, it is possible to hold the meeting via Skype or Zoom, but still, it is not a substitute for actually being there in person.Just like any other business, software development companies have an office, but they are unable to come together due to the Coronavirus. If a company does not have a remote workforce strategy in place, this could cause some temporary issues. Things usually get back on track when you have everything figured out. Software outsourcing companies are usually prepared for all kinds of disruptions, so they should have no problem shifting people around. As far as the pace of development is concerned, a lot of companies are continuing their normal processes, even with lower sales projections. They understand that sooner or later, this whole thing will blow over, and it is better to be prepared for the post-Coronavirus future.How is Skywell Software Handling the Coronavirus Crisis?Skywell Software is taking all of the necessary precautions to safeguard its employees from the Coronavirus. This includes implementing the necessary hygiene safety measures and remote work. All of the business processes are going along as usual, and there is no stop in development. We are fully committed to fulfilling all of our obligations to our customers, which is why we are working so hard to mitigate the fallout of the Coronavirus. One of our competitive advantages is that our business is built online, which allows our employees to work remotely and maintain the necessary communication with our clients.Currently, small businesses are feeling the brunt of the Coronavirus. They need to operate on a tight budget with customers who are reluctant to spend and employees who need to stay home. For many small businesses, if their employees cannot come into work, they would have to close their doors, which results in even more lost revenue. The good news is that experts believe the market will recover, and the government is willing to assist in any way they can.