I agree with umesh, the risk of some of the outsourced jobs in financial services and IT returning home to the US, UK and other parts of Europe is only to be expected now. India’s IT companies that were sanguine about
the business outlook for the near term would need to reassess the situation
given that foreign companies plan to cut IT budgets for 2009. Clearly, the IT and ITeS companies including BPOs/KPOs need to find
new opportunities and niches in a fast changing global economic environment....
By
Vikash Jaiswal, Business Analyst, SAP
| 11 10 2008 06:17:49 +0000
You are wrong paras, the ongoing slowdown in the
US economy has already affected the future growth in India's IT exports.
What you are saying is the future prospects which one cannot be sure about. The financial turmoil and
recessionary tendencies in major economies have already impacted India's IT export
growth & it will take time to recover....
By
Umesh Jain, Asst. Manager/Manager -(NonTechnical), IBM-Daksh
| 11 06 2008 15:41:35 +0000
The US recession will have negative impact on Indian IT industry so we must now plan and avoid dependence of only US market and to explore the other untapped countries to sustain growth
By
Vinayarajan KV, Head/VP/GM-Sales, EP Tech
| 10 28 2008 11:07:16 +0000
I diagree with Ganta. This financial crisis is going to hit India and Indian IT very hard by the end of this year. Just wait and watch.
By
Atul Kumar, Project Leader
| 10 28 2008 06:25:56 +0000
You are right Tanmaya. There will be lot of youngsters who got placed and who may (will!) suffer. Your concern is appreciated by all of us. When some transformation occurs, lot of people suffer. Spread your right hand wide and turn around to a full circle. All those who are within the reach of your hand will stay as beneficiaries of the transformation process. All those who are beyond are left out and suffer. In this group, there may be very talented people who deserve all support. But transformation is part of life. One has to accept it. I could give you few more examples : When the trend of hiring youngsters started, all those who were beyond 35 suddenly found themselves out of the market. True they got offers later but when? After four to five years, when companies found out that youngster supply is no more possible. These five years were crucial for those who were left out. Their confidence got shatterred. They were once sitting pretty. They had over ten years experience and built their knowledge. They were the pick of the lot. Suddenly they were nowhere!? Another example is cultural. Boys and girls in India are usually brought up conservatively. Our society is witnessing westernisation culture. There is free flow of expression and attitudes. Confidence amongst youngsters is on the increase. In every class, the "free" group was five per cent. Now it may be 50%. In some colleges, it may be beyond. But the majority is the conservative group. We brought up this majority conservatively. Now they are at a disadvantage. They are looked down by the confident group as incompatible. Confidence level of this group is coming down. They are going into a shell.... I am a parent and I feel sad. These youngsters in older times were hailed as best behaved, best mannered and appreciated all round. Without any mistake on their part, they are placed at a disadvantage. This is the compass of transformation. The silver lining of course is that change is for the better. Indians may come out of it better. We all think that opportunities increase for Indians. This takes a couple of years. Many will suffer during these two years. But a lot will gain in this transofrmation process. So take heart!! It pays to get philosophical sometimes.
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 10 20 2008 22:59:56 +0000
the industry is still hiring mr radhakrishnan....i beg to differ maybe some people lucky enough to run into a really lucky company.. man i have friends out there... some who got placed last year and were told that they would be joining by june... they haven't heard again from them companies since... renowned names like hcl, wipro, keane.. all batches have been postponed .. now they have been told to expect doj's by january... thet too tentative... aricent fired all employees with less than 5 years experience few months ago forseeing the reversal in the it industry boom... of their own country... who got fired...friends working in theiir indian offices.... infosys had to revise its q1 and q2 predictions for next year... come on...its not a debate it is facts... and some friends out there who are in the market searching for jobs... they don't even have few minutes spare to support or oppose this debate
By
tanmaya , Software Developer, Infosys Technologies
| 10 20 2008 18:49:54 +0000
I am totally agree with this article, as I am in favor all the reasons given there. I would say its fair enough that the govt would take action there, but they couldn't be that restrictive to hurt there own economy, which is already going not well. So that will make them to pass there expensive jobs here on cheap prices
By
Vivek Kanwasia, CEO/MD/Director, Vstechno Transcription Services
| 10 18 2008 00:16:57 +0000
come on people..... us is currentlyundergoing a more severe financial crunch, employment rate there are on a low... and at such time the race for presidency is going on... whoever will come to power will have to enforce some strict measures takin his countries situation into account rather than ours.... trust me.... sooner or later ( kiddin!!! it will be sooner) a lot of out sourcing is going to be cut.. or taxes on such companies will be raised so many companies will shy away from outsourcing jobs (this tax raise actually features in the portolio of bth obama and maccain... goBBc).... it is going to hurt us all right.....the only thing left to discuss is how much???????
By
tanmaya , Software Developer, Infosys Technologies
| 10 16 2008 17:29:57 +0000
This is going to hurt a but as IT spending will be blocked or cut by large amount to meet the cash crisis by many companies, large or small. This is where the new project will be differ or delayed by year or two. This slow down will impact the oppotunities for new college passouts and they will be in less demand. This will also open the door for some companies to outsource their back office work to India or cheaper company to reduce the operation cost. This will be small fraction only compare to business loss due to finance crisis.
By
Atul Kumar, Project Leader
| 10 03 2008 14:39:11 +0000
US economy is at its lowest ebb. Regulators failed miserably. The failure of financial institutions is taking its toll world over. Liquidity conditions in US are very tight. Naturally there will be a slow down in the activities of US companies. The outsourcing business placed with countries outside US including India will take a hit.
By
veguru vijayakumar babu, Head/VP/GM-Finance/Audit, Sujana Group Of Companies
| 09 30 2008 10:53:03 +0000
|
I do not think they can stop any business, like for e.g. Bank, Pharma etc......
There might be realignment of the business, consolidation and mergers to capatilise the market, competition.
NEW MARKET PLAYERS
These things will impact in revenue resources, but distribution of the revenues will happen. New market players will emerge inspite of the big players.
VALUE LEADERSHIP
Businesses demand for delivering more value as partners.
By
Ravi Kumar B N, Project Leader/Managing Consultant, Freelancer
| 02 13 2009 08:38:42 +0000
umesh,i am not wrong my point was to prove that our IT industry does not need to worry about the current economic downturn as "we have a strong knowledge base" and the established market players here which would not be affected. And it is all a temporary phase and very soon, the US
dollar will reach a stable position which will ease the things & i will continue to say that our IT sector is safe and would continue
to grow....
By
Paras Gupta, Asst. Manager/Manager -(NonTechnical), Genpact
| 11 12 2008 05:55:03 +0000
I agree with sham & Radhakrishna & in fact in a slow economy, many more companies will take a fresh look at outsourcing due to the inherent benefits of having an outside expert manage their IT infrastructure more cost effectively. Even as global corporate giants like Yahoo, eBay, Citigroup and Pepsico are cutting down on thousand of jobs in the midst of current turmoil, their workforce in India has remained mostly insulated or little affected so far. Indian offices of these MNCs are not affected for the simple reason
that their Indian employees are the least paid. So whenever they look
at reducing manpower for cost cutting, the highly paid employees of the
west get the boot first and the same job will be transferred to either
India or China. So actually this economic downturn will result in India
getting more jobs.The exception will only be the super-inefficient
businesses (mostly foreign BFSI) which have to cut down even the lowly
paid Indian employees....
By
Paras Gupta, Asst. Manager/Manager -(NonTechnical), Genpact
| 11 06 2008 06:13:32 +0000
I agree. Why are we looking at only US? There was lot of activity there and outsourcing was taking place. If such activities come down, heaven is not going to fall (or hell?) over our head. Afterall, we have the talent, infrastructure and capabilities which we have built over a period of time. If not US, activities will pick up elsewhere and we go there with our outsourcing credentials! Activities could pick up in India too! Whatever said and done, the classic demand and supply factors affect pricing for sure. Initially, outsourcing activities come down. Our BPOs will have surplus capacity. To offset it, our pricing comes down. Revenues do fall. Already we have witnessed reduction in salaries both in India and rest of the world. But all this will again improve. The fall in revenues will be short term but drastic. Recovery in revenues will be long term and gradual. But it will recover for sure!
By
SR Sham Sunder, CEO/MD/Director Technoaid
| 10 20 2008 16:00:38 +0000
Tanmaya fair point but I don't see any such things happening against India, our IT industry is matured enough & it is insulated from the financial crisis that has hit many economies globally, and companies here have not stopped hiring professionals either so this is a positive sign. And rightly mentioned by Paras also that Indian IT companies should look out for other markets & in my opinion preferably Japan because the total Japanese IT services market currently stands at $108.6 billion, out of which off shoring is limited to only 8-10 percent at present. Acute manpower shortage in the Japanese economy gives India that pocket of growth....
By
Radhakrishna Marar, Business Analyst, Oracle
| 10 20 2008 14:35:45 +0000
I agree with Kishore point of view. Still I see more opportunities for India and Indian companies in coming days.
By
Atul Kumar, Project Leader
| 10 16 2008 09:05:04 +0000
It depends. No and Yes No-In Long Term Yes-In Short Term This turbulent time will force us to innovate the IT business model to become more efficient and get more diversified in mulptiple parameter
By
Kishore Garnayak, QA/QC Manager Wipro
| 10 15 2008 16:10:48 +0000
What I think is that the re-structuring of financial services that is taking place in US will not bring a slow down in offshoring. As economic slowdown is good for cost-cutting it will lead to higher offshoring and also Indian IT companies are looking European market as there business destination.
By
Paras Gupta, Asst. Manager/Manager -(NonTechnical), Genpact
| 09 29 2008 08:48:14 +0000
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