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Introduction

Report: The Impact of Video Communications During COVID-19

Both a global health crisis and economic recession, the COVID-19 pandemic dramatically changed the way organizations operate. Commissioned by Zoom, the Boston Consulting Group (BCG) conducted a survey and economic analysis evaluating the economic impact of remote work and video communications solutions during the pandemic.

This report, prepared by Zoom based on the survey data and findings made by BCG, focuses on what industries were able to pivot their business processes using communications technologies, resulting in business continuity, and even growth, during a time of significant economic turmoil.

A new day-to-day

Every so often, we witness an era-defining event — the Great Depression, the Great Recession, and now the COVID-19 pandemic. The latter, which began in the late days of 2019, affected all facets of life — the way we socialize, work, and live. As both a global health crisis and a resulting economic recession, the pandemic forced institutions everywhere to find new ways to function in order to keep the public safe. Video communications were suddenly our lifeline to society, enabling us to continue work and school in a digital environment.

Grappling with new limitations, businesses of all shapes and sizes faced an onset of unique challenges. As social distancing measures forced people into their homes, organizations looked for ways to keep their business viable and help employees stay safe, connected, and productive.

To work from home effectively, organizations turned to Zoom for business continuity. Traditional, in-person operations pivoted, with industries like education and healthcare quickly adopting these solutions to remain agile and continue to operate. Any baby steps toward digital transformation suddenly had to become leaps and bounds, with people reimagining their entire day-to-day practically overnight.

To measure the economic impact of video conferencing in enabling successful remote work, Zoom commissioned an economic analysis and survey conducted by Boston Consulting Group. The resulting report spans key industries and six countries around the globe, specifically looking at five U.S. states as well.

A few top takeaways from the report:

2.5-3.0x increase in employees working remote at businesses surveyed, which was supported by a 2.4-2.7x increase in employees using video conferencing solutions

The total time spent on video conferencing solutions increased 3-5x at businesses surveyed

Small-to-medium-sized businesses (SMBs) surveyed experienced a 2.6x increase in the share of employees working remotely during the pandemic

For education, there was a 3.5x increase in the use of video conferencing solutions at businesses surveyed

BCG’s COVID-19 employee sentiment survey from 2020 showed that 70% of managers surveyed are more open to flexible remote working models than they were before the pandemic, specifically 72% of managers in the U.S., 70% in Germany, and 92% in India

Hybrid working models are here to stay — businesses surveyed expect over a third of employees to work remotely beyond the pandemic

Report methodology

Commissioned by Zoom, BCG conducted an economic analysis based on publicly available GDP and employment data. For the survey portion of the report, BCG conducted a B2B survey that polled respondents that are full-time employees and currently serve as an owner / member of the C-level, head of office, or in a position in IT management and are from businesses that use video conferencing.

Each respondent was required to be at the company for greater than two years and able to speak (i.e. have general or precise knowledge) about video conferencing usage as well as changes they witnessed in their company between 2019 and 2020, specifically around the number of employees at the company, the share of employees working on-site vs. remote, and change in company revenue and employment. There were 5,820 total respondents, with 1,320 from the U.S., 921 from the U.K., 954 from Germany, 824 from France, 808 from Japan, and 993 from India.

The survey sampled people across small, medium, and enterprise-sized businesses in multiple sectors, including education, healthcare, technology, professional services, finance insurance, real estate, retail/wholesale, government, and others. Small and medium-sized businesses were defined across the regions as companies with less than 1,000 employees (U.S.), less than 500 employees (Germany), less than 300 employees (Japan), less than 250 employees (U.K. and France), and less than Rs. 250 Cr in annual revenue (India).

Impact by country

As countries around the world grappled with lockdowns, each had its own unique experience with remote work and video communications solutions. Some trends emerged across all those examined, while individual approaches to stay-at-home orders and views on remote work created unique economic situations across the countries involved in the report.

Global GDP Change 2020 vs. 2019



1. 2020 total GDP compared to 2019 total GDP
2. Using projections for Q4 2020
3. Using projections for 2019–2020
4. Using projections for Q2-Q4 2020
Source: US Bureau of Economic Analysis, Oxford Economics

Global Employment Change 2020 vs. 2019



1. Latest available quarter in 2020 compared to Q4 2019
2. Calculated using Q4 2020 data
3. Accounts for furloughed headcount
4. No furlough data available
5. Limited accuracy expected due to discrepancies at sector level
Source: US Bureau of Labor Statistics, UK Office for National Statistics, Federal Statistical Office of Germany, France National Institute of Statistics, Japan e-Stat, CMIE

GDP and Jobs Saved by the Ability to Work Remotely



1. Q4 2020 vs. Q4 2019
2. Q3 2020 vs. Q4 2019 except USA (Q4 2020); accounts for furlough
3. Excludes government, entertainment, real-estate sectors due to lack of available data
4. India excluded due to inaccurate available GDP and employment sources
Source: Oxford Economics, US BEA, US BLS, UK ONS, Federal Statistical Office of Germany, France National Institute of Statistics

To look at how remote work and video conferencing solutions affect the way people work, both now and in the future, the survey asked respondents to estimate what share of their company’s employees worked or will work fully or partially remote in 2019, 2020, 2022, as well as the share of employees in their company using video conferencing solutions in 2019, 2020 and expected to in 2022. They were also asked to estimate the increase in hours spent on video conferencing by employees each week. Results were grouped by enterprise and SMB.

Video Conferencing Usage for Surveyed SMBs (as % of employees)

Remote Work Trends for Surveyed SMBs (as % of employees)

Average Increase in Hours on Video Conferencing, per Employee per Week for Surveyed SMBs (2019-2020)

Video Conferencing Usage for Surveyed Enterprises (as % of employees)

Remote Work Trends for Surveyed Enterprises (as % of employees)

Average Increase in Hours on Video Conferencing, per Employee per Week for Surveyed Enterprises (2019-2020)

Source: BCG B2B video conferencing customer survey, commissioned by Zoom

Impact by U.S. state

While individual state economies experienced unique fluctuation, protecting small businesses was a top concern across the U.S during COVID-19. For this report, Zoom commissioned BCG to look at five specific U.S. states to examine the role of remote work and video conferencing in supporting small-to-medium-sized businesses during this time.

These states included California, Florida, Illinois, New York, and Texas. The findings show us that video conferencing helped enable business continuity, introduce new ways of working, and even helped improve employee morale at the SMBs surveyed.

California

  • 4% average increase in revenue of SMBs surveyed, 2019-2020
  • 88% of SMBs surveyed agree “Employees at my company rapidly adopted video conferencing solutions with limited training.”
  • 87% of SMBs surveyed agree “Employees at my company found video conferencing solutions easy to use, leading to a smoother transition to remote work.”
  • 82% of SMBs surveyed agree “Video conferencing solutions helped boost morale and mental well-being of employees at my company during the pandemic.“

Florida

  • 2% average increase in revenue of SMBs surveyed, 2019-2020
  • 77% of SMBs surveyed agree “Employees at my company rapidly adopted video conferencing solutions with limited training.”
  • 61% of SMBs surveyed consider “Video conferencing solutions a must-have or very important for remote work.”
  • 76% of SMBs surveyed agree “Video conferencing solutions helped boost morale and mental well-being of employees at my company during the pandemic.”

Illinois

  • 4% average decrease in revenue of SMBs surveyed, 2019-2020
  • 80% of SMBs surveyed agree “Employees at my company rapidly adopted video conferencing solutions with limited training.”
  • 75% of SMBs surveyed agree “Video conferencing solutions helped improve the productivity of my company's employees during the pandemic.”
  • 65% of SMBs surveyed agree “Video conferencing solutions helped boost morale and mental well-being of employees at my company during the pandemic.”

New York

  • 7% average decrease in revenue of SMBs surveyed, 2019-2020
  • 73% of SMBs surveyed agree “Employees at my company rapidly adopted video conferencing solutions with limited training.”
  • 71% of SMBs surveyed consider “Video conferencing solutions a must-have or very important for remote work.”
  • 72% of SMBs surveyed agree “Video conferencing solutions helped boost morale and mental well-being of employees at my company during the pandemic.”

Texas

  • 13% average increase in revenue of SMBs surveyed, 2019-2020
  • 88% of SMBs surveyed agree “​Employees at my company rapidly adopted video conferencing solutions with limited training.”
  • 78% ​of SMBs surveyed consider “Video conferencing solutions a must-have or very important for remote work.”
  • 77% of SMBs surveyed agree “Video conferencing solutions helped boost morale and mental well-being of employees at my company during the pandemic.”

Source: BCG B2B video conferencing customer survey, commissioned by Zoom

Impact by industry

No industry was immune from the economic impact of the pandemic, but some were able to make dramatic shifts in behavior to adjust. Digital transformation led the way, with the implementation of remote work and adoption of video conferencing solutions helping organizations save money and jobs.

For this survey, BCG took a look at how the healthcare, education, technology, and professional services sectors embraced remote collaboration to enable continuity during the pandemic and how the trends may continue in the future.

Healthcare

  • 2.4x increase in remote work during the pandemic at businesses surveyed
  • 2.6x increase in the use of video conferencing solutions during the pandemic at businesses surveyed
  • 80% of businesses surveyed agree “Video conferencing solutions will continue to be essential for business operations beyond the pandemic.”
  • 67% of businesses surveyed agree “My company is considering a flexible remote working model because of successful remote collaboration through video conferencing solutions.”

Education

  • 3.3x increase in remote work during the pandemic at businesses surveyed
  • 3.5x increase in the use of video conferencing solutions during the pandemic at businesses surveyed
  • 81% of businesses surveyed agree “Video conferencing solutions will continue to be essential for business operations beyond the pandemic.”
  • 65% of businesses surveyed agree “My company is considering a flexible remote working model because of successful remote collaboration through video conferencing solutions.”

Technology

  • 3.1x increase in remote work during the pandemic at businesses surveyed
  • 2.4x increase in the use of video conferencing solutions during the pandemic at businesses surveyed
  • 84% of businesses surveyed agree "Video conferencing solutions will continue to be essential for business operations beyond the pandemic."
  • 77% of businesses surveyed agree "My company is considering a flexible remote working model because of successful remote collaboration through video conferencing solutions."

Professional Services

  • 2.7x increase in remote work during the pandemic at businesses surveyed
  • 2.8x increase in the use of video conferencing solutions during the pandemic at businesses surveyed
  • 83% of businesses surveyed agree "Video conferencing solutions will continue to be essential for business operations beyond the pandemic."
  • 64% of businesses surveyed agree "My company is considering a flexible remote working model because of successful remote collaboration through video conferencing solutions."

Source: BCG B2B video conferencing customer survey, commissioned by Zoom

Examining the future of work

While the COVID-19 pandemic made remote work a necessity, the trend is here to stay. Some workers will go back into the office after the pandemic, but most others will still collaborate virtually as remote or hybrid employees.

In fact, the Boston Consulting Group research findings reveal that remote work will remain prevalent in almost all the countries surveyed.

The Future of Remote Work and Video Conferencing

Source: BCG B2B video conferencing customer survey, commissioned by Zoom

The pandemic proved organizations don’t have to sacrifice employee productivity to offer the flexibility and agility that comes with remote work. With the right solutions and processes in place, employees can work efficiently from anywhere.

A hybrid approach will also be necessary when it comes to fostering and retaining talent. The pandemic spawned a more geographically diverse workforce — people moved out of certain regions, they applied to and accepted jobs under a remote context. With a widespread, global workforce, creating a hybrid workforce is not a luxury, it’s a necessity.

Enabling an everywhere workforce

COVID-19’s impact has been profound. The world is different and the workforce is everywhere. The report’s findings tell us that technology will only continue to play a pivotal role in defining what’s next.

To build a resilient remote workforce, organizations need intuitive solutions that can keep pace. Strategic technology adoption will enable scalable growth and pave the way for innovation, setting this new workforce up for long-term success.

By empowering employees with agile solutions, you can future-proof operations and foster a resilient, happier workforce. Remote work won’t be a novelty exclusive to the pandemic, but rather a competitive advantage.

To learn more about how you can empower an agile, hybrid workforce, check out our Building Forward resources.