Tuesday, June 2, 2009

RECESSION synonymous with IT

I have been hearing a lot about recession in India, job cuts everywhere, panic all around etc. What recession mean to the people of India?? Even I have been a victim of recession in the early 2008, the reason, quite same to that of everyone, my ex-company which used to work for US Clients suddenly didn't have any projects. The sceanario is quite same everywhere. The problem is more external rather "UNITED" more than Internal. Even if there is a rise in the GDP growth, govt. focussing on more investments in the Railways sector, a confident political scenario beaming but this doesn't help.

I somehow feel that the word "Recession" is synonymous to IT. It's all about how Lehman and GM getting bankrupt, turmoil is the financial industry esp sub prime crisis taking a toll on India's IT health, market dynamics in US directly affecting the IT market dynamics in India. There's a saying which goes, if US sneezes, India catches Cold which is very true.The Indian IT companies are so very dependent on the US market ranging from Banking, Retail, Healthcare etc, that if there is even a slight variation in the performance of those sectors in US, the Indian IT companies performance too varies. Suddenly, they are left out with no projects, big companies loosing out on major chunks, people losing their jobs and ITS RECESSION everywhere in India!!!

US is not the only reason for the recession in IT companies in India. The other thing which affects is "CAUTION". Fear grips the world market because of certain incident affecting the world economy for e.g Sub prime crisis and then other financial companies in the world get alarmed and take more precautions to stop such incidents in the future. This "Caution" leads to shrinking of budget,putting hold to some on-going projects and plans and take a strategic shift from transformation to settlement. In this scenario when the whole world sits and takes a close watch rather than focussing on their future plans, it too affects our IT economy.

The problem is not how and where Recession started, but how and what to do so that it doesn't affect us in the future!!!