IT sector may be
hit
As around 40 percent of the software exports from the
state are being made to the US, the financial turmoil
in the US is likely to have its repercussions in the
IT sector of the state.
Experts in the IT sector feel that the present crisis
may obviously add to the sluggishness prevailing in
the IT sector over the last several months owing to
the global recessions. But the phenomenon is not likely
to last long, they say citing various factors. Among
the IT companies operating from the state, like the
Infosys, the Wipro and the TCS are mainly doing business
in the US.
“Since about 67 percent of the IT exports from
the country is to the US, there will be a shake up in
the IT sector due to the crisis in the US. But many
new destinations for IT are coming up.
India itself is emerging as a major market for IT,”
says former chief executive officer of Infopark Girish
Babu.
He feels the crisis may even be an artificial one to
hold back the skyrocketing expenditure on human resources
and infrastructure. Many of the leading IT companies
in the state, even while desisting from massive retrenchment,
had put a ceiling on fresh appointments following the
global recession. There were tight limitations on pay
hikes in the IT sector and a leading company operating
at Technopark here had given zero-percent hike, it is
reliably learnt.
“The US credit crisis will have far reaching
effects for the Indian IT industry - especially for
vendors with higher exposure to US BFSI industry.
This is intense, considering the fact that BFSI is
the largest IT consumer than any other industry and
many of the top Indian IT vendors have the US and the
BFSI as a strategic market.
Many Indian IT firms will likely see lesser revenues,
cost cutting and job cuts,” says SunTec Business
Solutions president and chief executive officer, K Nandakumar.
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