Hanna Olasiuk, Sanjeev Kumar, Prashant Sharma, Tetiana Ganushchak
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Impact of COVID-19 on the Efficiency of Indian IT Companies
The purpose of this study is to investigate the impact of the COVID-19 epidemic on Indian information technology enterprises using data from the 10 largest IT firms listed on the Nifty IT index. Data were sourced from the PROWESS IQ database for 2017–2022. Input-oriented data envelopment analysis (DEA) using CCR and BCC models was applied by taking gross revenue as an output and labour, costs of fuel, materials, power, administrative and general costs as input variables. The study finds a positive although not statistically significant difference in the efficiency of Nifty IT companies during COVID-19 compared to pre-pandemic levels. Additionally, firms experienced higher scale efficiency compared to production efficiency growth throughout 2020–2022. Around 70% of Nifty IT firms faced a decreased efficiency in input utilization during the COVID-19 outbreak. Further, 50% of Nifty IT firms operated under increasing returns to scale and required expansion of business in 2021–2022. The dimensions of returns to scale exhibited stability in the long run. Companies with increasing returns to scale had a 7% lower average technical efficiency than firms with decreasing returns to scale. Large firms demonstrated better scale efficiency. The results of the study can be used by managers to increase the efficiency of firms.
期刊介绍:
Vision-The Journal of Business Perspective is a quarterly peer-reviewed journal of the Management Development Institute, Gurgaon, India published by SAGE Publications. This journal contains papers in all functional areas of management, including economic and business environment. The journal is premised on creating influence on the academic as well as corporate thinkers. Vision-The Journal of Business Perspective is published in March, June, September and December every year. Its targeted readers are researchers, academics involved in research, and corporates with excellent professional backgrounds from India and other parts of the globe. Its contents have been often used as supportive course materials by the academics and corporate professionals. The journal has been providing opportunity for discussion and exchange of ideas across the widest spectrum of scholarly opinions to promote theoretical, empirical and comparative research on problems confronting the business world. Most of the contributors to this journal range from the outstanding and the well published to the upcoming young academics and corporate functionaries. The journal publishes theoretical as well as applied research works.