The latest report from Tricor Group mentions that the majority of organizations in APAC are thinking about restructuring operations to keep up with the ongoing coronavirus heartbreak.
The COVID-19 Business Sentiment and Resilience Barometer Report reveals that nearly half (43%) of respondents from APAC will be forced to restructure business operations to stay afloat if the situation worsens further. The report is based on a survey of business leaders and finance executives at 1,050 organizations in APAC across 12 major industries.
Some of the key findings of the report are as follows:
- Nearly 50% of the respondents have cited cost reduction as an essential strategic focus to help in navigating business uncertainty, which is on the rise, owing to a significant reliance on China.
- The current public health situation has impacted businesses according to 1 out of 2 executives. They are also concerned about the future of their business.
- Less than 33% of respondents are confident about their crisis management teams’ capability of handling the outbreak situation.
- Nearly half (43%) of executives agree that the coronavirus has significantly increased their awareness of business continuity risks and has also multiplied their need for third-party, consulting and outsourcing support.
- Forty-six percent of respondents are actively looking for ways to streamline business functions through cost reductions and operational efficiency.
In order to make business operations smooth and resilient, Tricor has made the following recommendations to enterprises:
- Diversifying supply chains across different industries.
- Take strategic decisions to balance the interdependencies present in the market.
- Focusing on restructuring business operations to reduce operational costs
- Mitigating operational risk exposures through outsourcing and offshoring.
With the rising outbreak of coronavirus, companies in the Asia Pacific are becoming more resilient by restructuring, diversifying, and automating operations. Sentiments of concern around COVID-19 are most acute in the technology, hospitality and travel, professional services, consumer goods, and manufacturing sector. It is also increasing amongst small and mid-sized organizations.
Enterprises are already being targeted by coronavirus themed malware and phishing scams by cybercriminals. Kaspersky and Sophos have found phishing emails from hackers pretending to be from the Centers for Disease Control and Prevention and the World Health Organization (WHO). Moreover, several prominent tech conferences around the US and Europe including Google I/O annual developer conference in California, Mobile World Congress (MWC) in Barcelona, among others.
Enterprises are telling investors that sales are slumping due to the outbreak, conferences are being canceled, and workers are being instructed not to travel. As several factories and warehouses have been closed, the production of smartphones, cars, and other tech accessories will be affected as a significant amount of products are manufactured in China.