The net profit of the leading exporters in India was pruned tremendously in 2007-08 compared to the previous years. The net profit of TCS was 4.15%; Wipro was only 2.8% in this year. These flat rates of net income felt in the stock market and impact on the IT companies.
US bank and financial sector is bound to take the tolls in the industry of outsourcing. IT/ITes of India was expected early on to feel the impact because of the slowdown of the economy in US. The major projects as well as small projects in outsourcing are delayed and look for a better time to increase the US and global economy market. In this scenario, some of the companies are focused on Europe and East Asia. And some of them are concentrating on domestic firms that are reducing the revenue in outsourcing or IT applications.
Though the problem is very completed, but downtrends of IT/ITeS can be recovered by taking a good plan. NASSCOM estimate that it will need around 1 million jobs in the industry to fulfill the requirements but it will also create huge unqualified hands. So management should take the proper policy to take care of the clients.
