The power of the technology economy after COVID-19

Every headline on business and news websites. It is the fact that the Brazilian government has adjusted the GNP forecast during 2020 from 2.1% to zero

There is a curious expression in popular journalism: ‘No news is good news’, which essentially means that no news is a good sign. This saying has never been so relevant as it is today. Here is the bad news; every headline on business and news websites. It is the fact that the Brazilian government has adjusted the GNP forecast during 2020 from 2.1% to zero. Furthermore, the World Bank forecasts a 5% retraction for our economy. This is due to the Coronavirus’ impact on the productive sector, wealth, employment and income generating center.

It is expected that the Ministry of the Economy will ascertain the right reaction. Macro and micro economy challenges will be considerable and the Brazilian businessman, the one with reserves acquired through time, will be asked to participate in this recovery effort. Meanwhile we should, as strategy and management professionals, pave the way for private sector leadership in this crisis. 

Unlike other crises, the current situation means private companies must be ready to trigger economic growth. Some facts support this statement. If the government knows how to provide incentives accurately to businessmen, employment will recover quicker and companies will be able to invest efficiently and to scale provided that things get better. More capable companies – the ones who are prepared to find solutions during this time – will seize this moment more effectively.

Therefore, one of the essential tools in our recovery will be information technology, which creates incredibly potential for the transformation of companies whether by revitalizing legacy systems or by offering disruptive solutions that provide efficiency, sales and a better experience to the customer. The last few years were very demanding on the IT sector.    

Understanding consumers’ behavior, which has proven to be increasingly dynamic and demanding, requires digitalization and an eagerness for agile solutions. The companies that provide products and services in a proper channel and with fair prices will stand out when this crisis ends. It might be the after-crisis survival kit.

However, there is a powerful bottleneck in this process. The IT market faces a historical lack of talent. In Brazil, for instance, ten lawyers graduate for each engineer each year. At this point, even the quarantine can provide opportunities. Institutions, S System and technical schools are providing free online qualification courses that can better prepare current applicants or qualify new applicants in this field.

In summary, the equation is complex. In addition to courage and faith, we will need government measures, scarcity management and planning. After all, as the legendary jazz musician and pianist Duke Ellington said, “Problems are opportunities to show what one knows.”