DOWNTRENDS OF IT/ITES SECTORS – WHAT WOULD BE SCENARIO IN 2009!

As the financial and economic sectors are threatening down globally, the stock markets are tremendously dropped. The top analysts forecast that the falling down of the stock markets could reflect on the sectors of IT/ITeS in India. Their survey confirms the slower growth and lower profit could be happened in the industry of India especially on the IT/ITeS sectors.
The economic slowdown reflects a lot and very tough to reconstruct it. However, the investment banks are currently over staffed. To come out of the scenario, the investment banks are need to be converted into the commercial banks but this would reduce the employees, vendors and would have fewer budgets for IT/ITEs sectors. Financial service providers may hit to a trend of downward and may cost about 25% of the revenue because they are the most aggressive buyer in the arena of BPO services.
Most of the global IT and ITES business (nearly about two-third) are originated on the base of US. More than 40 percent of revenues of the global IT is flowed from the financial sector. More than 40 billion dollars are earned from US in the year 2007-08 and 60 percent of transactions are made by the Indian IT and ITES sector.
4-6% of the revenues of Indian IT companies are spending on sales and marketing. However, revenues are needed to minimize because of the mergers and acquisitions in US financial spaces. It creates a doubtful scenario for the Indian outsourced project in 2008; more than 25000 employees may become jobless in IT/ITES sectors. More than 40% of the major businesses may have cut their budgets for IT sections. This could be a horrible situation in the arena of IT and ITES sectors in India.