Impact of COVID-19 on Kyrgyzstan's IT Companies

Impact of COVID-19 on Kyrgyzstan's IT Companies
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Amid the coronavirus outbreak, the High Technology Park of the Kyrgyz Republic conducted a survey among its residents on the consequences COVID-19 has brought on their business. The goal was to understand the current state of IT companies in Kyrgyzstan and their needs during the crisis. A total number of 61 HTP residents have participated in the survey, 67% of which have confirmed their business was affected by the virus. Despite the mobile nature of tech professions, IT-sector is still heavily hit by this unprecedented situation. 33 companies felt the impact right after the first cases of contamination were reported in the country and once the quarantine was implemented nationally, they were confronted by significant challenges. 45.6% of the respondents reported decline in service demand and sales, while 19.1% had to undergo staff cuts. A collective estimated loss in HTP residents’ revenue per month is expected to be around 8 to 9 million KGS. The majority of the companies consider tax assistance the most needed from the government with the fallout from the coronavirus. At the moment, HTP is working together with the government bodies on recommended steps to take in order to shield the tech sector from the critical damage.