How the Coronavirus Affects the Value of Your IT Assets

The Corona Virus pandemic is affecting everyone on a global scale. Virus infection causes unforeseen damage to the lives of people and businesses around the world. With everyone and everything impacted by the pandemic, the IT industry cannot be an exception to this global disaster.

As per National Foundation for American Policy, the IT Sector’s Unemployment Rate stand at 2.8% only.

The IT industry is one of the world economy’s premium sectors and is the real driving force that drives most business activities. With the corona outbreak, there is a massive disruption in the working environment of the IT and IT-enabled services that have a great negative impact on the value of your IT assets.

So if you are considering disposing of your unwanted IT assets, this article will make you aware of how the value of your IT assets changes after the outbreak of this Pandemic.

Corona Virus and The Valuation of Used Equipment

The demand is the only evaluator:

The IT assets’ value is fast falling because of various factors like that of the swift introduction of new technologies, large-scale migration of IT activities to Cloud-based systems. Because of these and other reasons, the IT infrastructure that you have created by spending a big fortune becomes obsolete before the end of a lifetime. Due to this, it forces every Company, irrespective of its size and extent of its activities, to retire its IT assets sooner than expected.

Most of the companies have a clear Information Technology Asset Disposal (ITAD) plan and act through their carefully selected ITAD service providers. These companies have a lot of expertise and experience in disposing of your retired IT assets scientifically and help you get the best value for them in the used equipment market. They take your IT assets, do the necessary servicing, data swiping, repurposing, and scientifically dispose of them.

The outbreak of the Corona pandemic has severely affected how the IT industry was functioning hitherto. Most of the giant IT companies have drastically reduced their workforce and are working off-site and from the employees’ homes. Governments are strictly enforced lockdowns and closures as a way of social distancing to prevent the uncontrolled infection of the corona to new regions and groups of the population. The educational institutions are closed, and the future of their opening is subject to great uncertainty.

The value of your IT assets you want to dispose of through a good ITAD company like StarPc Excess depends more on the demand that prevails in the used IT assets market. The coronavirus has brought down the entire setup of many businesses, and it may take a long time to resume operations even after the infection is halted. The normalcy in business operations seems to be uncertain and may become elusive for long periods, placing undue hardship on all.

Lack of Demand in Used-Equipment Market

Recycling could be the only option:

Computer users in the home sector and those in the small and medium business categories are the ones that buy more used computers and other related devices. As the coronavirus has completely shattered this sector and their future hangs in uncertainty, there is a drastic fall in demand for the used computer equipment.

These small business owners will find it difficult to run their business immediately after the pandemic is over. This will lead to a continued redundant phase for them to expand their business or scale it up to the next upper level. Due to this, the demand for the used computer equipment that you want to sell in the used computer markets through your ITAD Company will remain low for a reasonably long period. This will affect your plans to get a good price for your used IT equipment when you attempt to sell your unwanted It assets.

The corona pandemic’s effect is so widespread that it leaves no one untouched by its evil hands. Due to this market for the old, used computer equipment will not improve for a long time, and hence your IT assets may not go well in the used IT assets market. The price your ITAD Company may get for your IT assets may not be good for a long period. Sometimes it may be challenging even to sell them, and your ITAD company has to send them for recycling, being unable to find buyers for them.

It affects the technological industries more by the corona pandemic. It has caused severe disruptions in the supply of new IT assets, as most of the manufacturing processes are done by Chinese companies in their country. Almost all the technological equipment dealers and companies supplying them to their end-users depend more on the Chinese manufacturers to get their products manufactured and supplied to them wherever they are in the world.

Effect of Corona on New Equipment Pricing

Uncertainty in the industry is a big red flag:

China is the epicenter of the virus, and it has brought it under control by resorting to aggressively repressive measures heavily disrupting the movement of people and goods. They halted all the factories and manufacturing activities. People remained indoors for a long period. Due to all these, the supply chains for most of the IT equipment that was manufactured in China are now totally thrown out of gears. It may take a long time for the normalcy to return in this vital link in the chain of supply to the entire world.

The continuous preventive steps taken by many governments and the Chinese government are making many people go into quarantine for prolonged periods. The partial and full shutdowns prevailing in most parts of China and other countries, expecting the supplies to resume from Chinese factories, have to wait for long periods to restore their supply lines and the supply position to reach normal levels.

The coronavirus infection has caused a serious impact on the progress of various projects that are using IT assets in large numbers. The economy of many of the countries, especially those that are most affected by the pandemic, will remain shattered for a long time. It will take tremendous effort and a long time for these economies to stand up and proceed. Till that time, the demand for the IT assets will be less, and when this is coupled with the disruption in the IT equipment supply chains, it is painting a grim picture for the value of the IT assets shortly.

The coronavirus infection has completely thrown out of gear several global events and conferences related to the IT industry. This has resulted in the stagnation of the new business processes’ introduction, new technologies that give rise to new IT products in the making.

This has also resulted in many lost business relationships and lost opportunities that were running the industry for so long. The inability to conduct large global conferences and other IT related marketing and other related activities has resulted in billions of dollars of loss to the industry. This will have a powerful impact on the overall IT market in the days to come.

The economic losses and the uncertainty as to the future of the industry will have a very high negative value for your IT assets.

Effect Of Remote And Online Interactions In The IT Industry

Only Demand for New Equipment:

Almost all IT companies’ normal functioning remains shattered and disrupted by the Pandemic, which has resulted in the increasing use of remote technologies and online interactions. This results in the development of new technologies like 5G connectivity and related new technologies for enhanced efficiency and faster connectivity. This will make all the existing IT infrastructure running the 4G and 3G connectivity obsolete sooner than you expect, adding to your overall cost of operation.

It will impact you in both ways as you will face a lot of difficulties in sourcing new IT equipment to activate and run new technologies. You will be forced to pay more for the new equipment due to increased demand in the market. Your used, unwanted equipment will find no buyers, and you will have to give them at much-reduced prices due to lack of demand for used IT equipment.

Thus, the coronavirus epidemic has a severe and prolonged impact on your IT assets’ value. You and your company have to cope with the emerging bad situation that arises because of the corona pandemic. This is sure to leave the world economy in a shattered condition, and recovery from this entire situation will be very uncertain.

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