Hardware Products are in Shortage in the Market after Lockdown - TAIT

There is a shortage of hardware products in the market. As the lockdown brought in the need for remote working, mobile computing and personal computers saw a spike in demand. But the required production to meet the supply lacked, leading to a shortage. Besides this, migration of the processor has added to the supply shortage. These shortages in the supply of hardare products were expected by many partners to move into June end of the first quarter.

With the second wave in the place, this shortage of hardware products is expected to extend for another six months, according to TAIT. While talking to IT partners, some companies have said that the product availability is possible nearing October.

“Upcoming quarters are expected to be steady without any unforeseen movement, but with its own challenges of Availability. Imports were not easy and all the Ports were congested beyond imagination. Costs of international & domestic logistics have gone through the roof and overall, it has been supplier’s terms that ruled the market,” said Viren Bavishi, General Secretary, TAIT.

Ethernets and others are disturbed, whereas some of the mass distributed hardware products like laptop, display monitors have an availability in very small quantities. But the products are not floating around in the market like earlier. Their availability is also subject to materials like chips that are used.

Unprecedented surge in demand for hardware Products on one side, and disturbed supply chain for Q1-2020 in Manufacturing Countries, on the other side created shortages. Still, the industry could sustain in 2020 Q3 & Q4. By then, most semiconductor manufacturers ran out of planned production for required Chips.

“Now there is a huge shortage of Chips and so is finished goods. Product prices are rising and have shrunk the margins of normal channels. Those who sensed shortage coming and hoarded materials, minted money,” said Viren.

There is a shortage of screens for 20-inch and 18-inch monitors, silicon products. This rise in demand has caused a huge push in price. Unfortunately, with Corona still around, a lot of uncertainty prevails. The Lead time of many products are unreasonably high, and commitment of supply is a risky proposition for many niche products.

On the other hand, during 20-21, Entire world has got ready to attend a regular office for a full hour. This would take a lot more time in India, maybe a few more months, added Samir Parekh, President, TAIT. Adding to this, many corporates’ giants have plans for permanent Work from Home for their entire workforce and this is expected to see more reduction in New IT Infrastructure by large scale users. In turn, seeping in to hamper business of new projects and service providers who are into facility management services.

Many in the industry have been stressed. Many of those working with corporates on IT infrastructure or Service Providers who are into facility management services have no business since the offices were closed. As the situation lasted, they could not cut down their staff as they are the companies’ valuable assets and with hope for a better future. Many are in a position to not be able to pay their staff in full.

During Lockdown last year and now, TAIT has kept in touch with members with online meetings, touching upon the subjects like, Stress Management, Data Security, Sales Management during Lockdown. It has also done sessions on implementation of various HR policies due to situations arising out of Lockdown. Panel discussion on Work-Life balance was conducted, to know and explore various opinions of the entire ecosystem.

With an aim to support staff of MSME members, TAIT this year has collected contributions and will be adding to that fund from TAIT Reserve funds to provide necessities, mainly groceries to staff members. TAIT has done many more of such activities, added Samir

TAIT is a pro-active, leading IT association of India that represents the interest of the IT community in the ecosystem of Distributors / Sub-distributors / Resellers, System Integrators & Service Providers. It has over 350+ members representing the complete spectrum of IT organisations. Apart from businesses, TAIT leadership also helped few Members and several of their relatives to get COVID Bed within the hours of need.

“Hoping things will slowly but certainly fall in place, and TAIT is very optimistic that there is Great time ahead for IT Trade,” said Samir Parekh.

--By Ayshwaria Lakshmi

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