RSSNo Slowdown for the IT Sector
There has been a lot of talk of a possible slowdown in the IT Sector, below are some thoughts on the topic:
Announcing the fourth quarter results, Wipro Chairman Azim Premji and Satyam Chairman Ramalinga Raju on Friday dispelled fears of a possible slowdown in the IT sector. Premji said there is no cause of concern when it comes to business from the US. Satyam Chairman B. Ramalinga Raju said, "We continue to see a strong demand in the market," he said.
TCS CEO S Ramadorai and Infosys Chairman feel that Indian software companies are in a better situation in 2007 and are in a win-win situation in case of a US slowdown.
"The key indicator is the application development and maintenance work, which is expected to go up," says an IT analyst from a leading Mumbai-based brokerage house. According to research group Gartner, IT budgets will increase by an average of 3 per cent in 2007, up slightly from 2006 IT budget increases of 2.7 per cent.
Frank D Souza CEO CTS said during the earnings call – "We continue to see affirmation of the strong demand for our services both in our client relationships and in the ongoing opportunity for new business coming to us from an expanding range of industries across geographic markets. This was reflected in our first quarter results as we once again saw a broad base strength across our vertical segments and solution offerings
For the full year, based on the strong demand environment for offshore services and our favorable experience with ramp up rates, we are pleased to increase our guidance to at least $2.70 billion, a $30 million increase from our prior guidance for 2007."
This global economic recession will compel diverse financial organizations to outsource more work to cut costs to a large extent. This will definitely boost the Business Process Outsourcing (BPO) from the financial services sectors abroad, with our estimated work inflow increased to 40-45 times the current market size over the next five years.
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