Among the Asian markets, India plays a major role in IT and ITES outsourcing. The current global down trends are highly influencing the Indian IT and ITES industries. This influence is acting in negative and positive directions simultaneously on Indian IT companies. The adverse effect of the IT down trend includes all sorts of cost cutting measures taken by multi national conglomerates. These are resulting in firing of thousands of IT and ITES employees by almost all the IT majors. To withstand the global IT down trends, the corporate are also planning to cut down all the luxurious benefits offered to their employees. A few of the IT majors are also planning to reduce the salary packages of their employees in order to ensure their survival in the market. The best and the most noticeable attribute from the IT employees is that they are with standing the adverse effects in their careers.
As commented by majority of the analysts, India and other Asian markets are also getting a positive opportunity to widen or expand their scope of services. The expansion of the scope of their services includes the IT majors entering into non-IT businesses. Some of the most profitable business, which the IT majors are interested into entering, includes knowledge process outsourcing, business process outsourcing, and data analytics. One of the advantages of the Indian IT companies getting into non-IT business is that they can easily get the required and highly talented skill sets at considerably lower salary packages. Thus it is proven that the IT downtrend is also a coin with two faces called pros and cons.
Tuesday, February 24, 2009
Information Technology Downtrends
Amidst the current economic downtrend and global financial crisis some of the major analysts forecast that the growth in United States IT and ITES spending will considerably reduce through 2009. The current global downtrend has forcibly held back some of the U.S. IT companies to cut down their research and related annual spending. These analysts opine that the U.S. IT down trend is hampering the IT spending growth at a very minimum expected rate of 1.5-2.0 percent. Some of the analysts predict that the purchases of software by the U.S. government and non government sector would grow in a minimal trend. The analysts are not even expecting a CAGR of 2.5 percent through 2010 for the hardware purchases. The major downtrend identified in IT and ITES segments is specific to IT consulting, which is expected to decline by 2-3 percent compared to that of 2008. These kind of negative signs are highly pressurizing the IT and ITES majors to re-think and revamp the hiring and cost cutting strategies.
Other related sectors such as financial services are not expected to grow as they are concentrating on cost cutting rather than increasing their annual expenditure. Media and entertainment is another sector that will highly reduce the IT spending, which will dip the huge revenues of IT and ITES companies. Retail and consumer durable segment has also begun facing the demand slow down due to increased inflation rates across the countries and decreased purchasing power among the people due to huge economic slow down. This will in turn reduce th IT or ITES spending of retail and consumer durables industry.
Other related sectors such as financial services are not expected to grow as they are concentrating on cost cutting rather than increasing their annual expenditure. Media and entertainment is another sector that will highly reduce the IT spending, which will dip the huge revenues of IT and ITES companies. Retail and consumer durable segment has also begun facing the demand slow down due to increased inflation rates across the countries and decreased purchasing power among the people due to huge economic slow down. This will in turn reduce th IT or ITES spending of retail and consumer durables industry.
IT/ITES Downtrends
Global financial and IT down trends are the major reasons for recent recession and global panic. The IT downtrends gave a sudden quake to various market players across the industries. Emerging countries are grabbing the opportunity of hosting some of the best IT and ITES companies. This in turn is encouraging these counties’ governments to uphold their interests of educating people and increasing the English literacy rates. As the major IT and ITES projects are up coming in specifically identified locations, the corporate also have the wide opportunity to take nascent and fresh enthusiasts.
IT downtrend is also showing its adverse impact on internet majors. In recent past some of the internet companies faced financial crisis, that in turn provided a chance to its peer group to eye on grabbing either of its assets or rights in part and together. Some of the .com majors have diversified their business and entered into new verticals. The major opportunity for the IT companies is to turn their current client base into recurring client base for their new and expanded scope of services. In general, IT and ITES companies have more client base with highest confidence in their services and capabilities. Any non-IT organization, expanding their scope of services will have to spend huge amounts on their marketing and research strategies as it is a fresh trail for them. But the IT and ITES companies already existing in the market, will have their own trendy techniques deployed on retaining their current client base. This will make them easily pitch in to their existing client with an increased portfolio of services.
IT downtrend is also showing its adverse impact on internet majors. In recent past some of the internet companies faced financial crisis, that in turn provided a chance to its peer group to eye on grabbing either of its assets or rights in part and together. Some of the .com majors have diversified their business and entered into new verticals. The major opportunity for the IT companies is to turn their current client base into recurring client base for their new and expanded scope of services. In general, IT and ITES companies have more client base with highest confidence in their services and capabilities. Any non-IT organization, expanding their scope of services will have to spend huge amounts on their marketing and research strategies as it is a fresh trail for them. But the IT and ITES companies already existing in the market, will have their own trendy techniques deployed on retaining their current client base. This will make them easily pitch in to their existing client with an increased portfolio of services.
Downtrends of IT/ITES
Global financial meltdown has proved that IT or ITES sector is not giving enormous opportunity to functional or non-IT workforce. Some of the analysts opine that key movers and shakers of the IT industry are moving into non-IT industry. As per the slogan that the direction of the wind can not be changes but the sailors can turn their direction as per the wind, IT movers and shakers are entering into non-IT segment instead of trying to fight with the prevailing slow down. This shifting is due to the current scenario prevailing in the IT and ITES industries that are demotivating the senior management to step of out of the stagnant market segments. A major influencing factor for these changes is that non-IT segment has a major demand of highly talented and dynamic leadership. In order to face this upcoming demand, the industry is promising the attractive career paths to new leaders.
The increasing hiring of the non-IT companies began weakening the leadership teams of some of the global IT majors. IT or ITES companies are facing the adverse effect indirectly due to considerable brain drain to other industries. Non-IT industries are hiring generalists and specialists with different skill sets and trying to enter into IT related or enable services, which in turn is a major threat of existing IT players. Some of the global IT majors are approaching various techniques to retain their key leadership by promising attractive pay scales, incentives and adding huge value to their existing or current businesses and portfolios.
The increasing hiring of the non-IT companies began weakening the leadership teams of some of the global IT majors. IT or ITES companies are facing the adverse effect indirectly due to considerable brain drain to other industries. Non-IT industries are hiring generalists and specialists with different skill sets and trying to enter into IT related or enable services, which in turn is a major threat of existing IT players. Some of the global IT majors are approaching various techniques to retain their key leadership by promising attractive pay scales, incentives and adding huge value to their existing or current businesses and portfolios.
Downtrends of IT/ITES
Global leading business information research companies forecast that the world markets will take some more time to overcome the current downtrend. In the mean time, the majorly affected segment, the financial sector has shown its adverse affect on information technology services. The adverse effect of IT or ITES downtrend has in turn caused negative effect on all the sectors including manufacturing, automobile, and finance etc. As ITES and related BPO sectors are highly influenced by global financial crisis, IT majors have taken specific measures to mitigate the risks involved. The down trend in the current demand for IT and ITES majors has highly influenced them to move into other related verticals of business or technology outsourcing. This will in turn reduce the risk involved in losing the IT or ITES businesses due to the prevailing recession.
Some of the IT majors are also considering in shifting their operational and production facilities from expensive locations to cost effective and inexpensive geographies. This will be a major reason for some of the IT majors to diversify their business verticals into related business outsourcing activities. Diversification of the technology companies’ services has also increased the opportunities enormously for non-IT consultants and work class. However, some optimist analysts opine that IT or ITES industry is having a good time to save their cost and thrive for better business outsourcing projects. As majority of the IT companies are focusing on diversifying their current portfolio existing business outsourcing players are facing a major hindrance in getting their projects outsourced by new clients.
Some of the IT majors are also considering in shifting their operational and production facilities from expensive locations to cost effective and inexpensive geographies. This will be a major reason for some of the IT majors to diversify their business verticals into related business outsourcing activities. Diversification of the technology companies’ services has also increased the opportunities enormously for non-IT consultants and work class. However, some optimist analysts opine that IT or ITES industry is having a good time to save their cost and thrive for better business outsourcing projects. As majority of the IT companies are focusing on diversifying their current portfolio existing business outsourcing players are facing a major hindrance in getting their projects outsourced by new clients.
Friday, February 20, 2009
Fall of IT/ITES
IT and ITES down trend has drastically reduced the campus placements across the globe. Many IT giants have cut down their target hiring and almost stopped hiring highly paid professional. They have taken this critical decision by considering the future growth aspects and expected shortfall in the net profits. Major IT players, who contribute to financial and non-financial services sectors, have almost declared that they are planning to cut down the staff strength to the possible extent. Global economic melt down has almost put a comma, for campus placements. Especially the technology based educational institutions are facing severe employment restrictions and getting the students placed with very lower packages compared to past six years.
The research reports published in past four moths clearly refer to reasons such as IT or ITES downtrend to be the major and specific cause for decreased employment opportunities for campus students. However, the trend in past few years is also revealing that students are not showing specific interest towards the IT and ITES placements as they are expecting various hazards in these employment segments due to changing trends. This reduction in the student count for IT education is showing an increased impact on management education as the student community is highly influenced by the analysts and the media that the next best opportunity after IT or ITES is management vertical. However, the upcoming youth class is more interested towards other fields of study rather than IT or technology as they are highly terrified with the sudden downtrend of the total segment due to various other economic related reasons.
The research reports published in past four moths clearly refer to reasons such as IT or ITES downtrend to be the major and specific cause for decreased employment opportunities for campus students. However, the trend in past few years is also revealing that students are not showing specific interest towards the IT and ITES placements as they are expecting various hazards in these employment segments due to changing trends. This reduction in the student count for IT education is showing an increased impact on management education as the student community is highly influenced by the analysts and the media that the next best opportunity after IT or ITES is management vertical. However, the upcoming youth class is more interested towards other fields of study rather than IT or technology as they are highly terrified with the sudden downtrend of the total segment due to various other economic related reasons.
Downtrends of Information technology enabled services
Global melt down is targeting various sectors and industries and hitting the targets in right time. Some of the major sectors such as IT and IT enables services have joined the completed target list of global melt down. These affected sectors are in turn hitting the various segments across the globe. Manufacturing is one such major segment, which is severely hit by IT or ITES slow down. The decreased demand for various manufacturing products has almost reduced the segment’s operation by 30 percent. The IT or ITES slow down has also affected the financial services sector as IT or IT enables services are well known for turning upside down of the any industry. This in turn is causing great affects on all the related sectors including, financing, housing, food and agricultural markets.
Major affectants of the IT or ITES slow down also include aviation and automobile sectors, which are highly dependant on the active movements of IT and IT enabled service players. This in turn has created a panic in most of the other industries such as entertainment and media, construction, and other consumer durable or utility segments. The complete global market scenario is dynamically getting influenced with the rapid movements of IT or IT enables service industries. This has been proved from various examples that have taken place in past one year time period. However, the optimists in all the segments believe that this will be settled down with in next few months but the analysts thinking in safer terms are expecting the down time to come to an end in early 2010.
Major affectants of the IT or ITES slow down also include aviation and automobile sectors, which are highly dependant on the active movements of IT and IT enabled service players. This in turn has created a panic in most of the other industries such as entertainment and media, construction, and other consumer durable or utility segments. The complete global market scenario is dynamically getting influenced with the rapid movements of IT or IT enables service industries. This has been proved from various examples that have taken place in past one year time period. However, the optimists in all the segments believe that this will be settled down with in next few months but the analysts thinking in safer terms are expecting the down time to come to an end in early 2010.
Downtrends of Information Technology
The global IT markets’ slowdown is ramping up the competition to a maximum extent and proving that some of the IT majors have began working on cost plus minimum margin models. The cut throat competition prevailing in global IT and ITES markets is providing ample opportunity for small and developing countries to host the dozens of office establishments in their deep interiors. In fact the global markets are thoroughly restructuring their working style by extracting the majority of the work from the fewer and most talented but cost effective employees. One of the covered but known truths is that newly hosting countries of IT majors are still importing the learned brains from developed or developing countries by paying the premium packages.
Some of the Asian tourist destinations including Malaysia, Thailand, and Singapore are hosting major IT players’ off shore locations and competing for offshore and outsourced projects along with other developed or developing countries. Some of the experts also opine that the IT or ITES downtrend has also provided ample opportunity to many islands to shape them selves as the future IT hubs. As a result of the global IT downtrend, some of the business processing and knowledge processing outsourcing providers are entering into innovative offerings including strategic cost cutting planning’s through data or cost analytics services. This will also reveal the story behind the screen that in spite of huge losses occurring to IT majors is being turned into huge revenues of other tiny players. The best way to describe the situation is “create a specific service that seem to be attracting to your customer and can fetch huge revenues to you”
Some of the Asian tourist destinations including Malaysia, Thailand, and Singapore are hosting major IT players’ off shore locations and competing for offshore and outsourced projects along with other developed or developing countries. Some of the experts also opine that the IT or ITES downtrend has also provided ample opportunity to many islands to shape them selves as the future IT hubs. As a result of the global IT downtrend, some of the business processing and knowledge processing outsourcing providers are entering into innovative offerings including strategic cost cutting planning’s through data or cost analytics services. This will also reveal the story behind the screen that in spite of huge losses occurring to IT majors is being turned into huge revenues of other tiny players. The best way to describe the situation is “create a specific service that seem to be attracting to your customer and can fetch huge revenues to you”
Sunday, February 8, 2009
Downtrends of IT/ITES
The last quarter’s financial results of most of the IT players have shown a drastic reduction due to global economic slow down. This scalable slump is equated to the scientific ripple effect by some of the analysts. Though this was a predicated risk, the majority of the IT and ITES players have not considered the advance signs of the market slowdown. A drastic change is seen in ITES players’ management strategy and directions by cutting down the excess employee strength and replacing the expensive resources with low cost resources. The net profits of the most of the IT companies are down, which in turn will unveil the employment insecurity in all the IT or ITES employees. Some of the global IT exporters have moved their offices from most expensive locations to low cost countries and added to their cost cutting efforts.
This global meltdown has also influenced various business process outsourcing players by narrowing their scope of expansions. The sudden impact of the declining results was high on various stock movements and in fact influenced the total service sector with huge negative vibrations. The IT or ITES downtrends prevailed across the Asian markets has adversely affected all related investments. As the regular savings of various professionals and working class has considerably decreased, the per capita income in majority of the countries has abnormally reduced. A specific and enthusiastic question from every IT or ITES player is “when this downtrend will stop?” One can not easily guess the limit of this downtrend as it is again proven that ripple effect is a kind of end-to-begin effect chain that can not be easily stopped.
This global meltdown has also influenced various business process outsourcing players by narrowing their scope of expansions. The sudden impact of the declining results was high on various stock movements and in fact influenced the total service sector with huge negative vibrations. The IT or ITES downtrends prevailed across the Asian markets has adversely affected all related investments. As the regular savings of various professionals and working class has considerably decreased, the per capita income in majority of the countries has abnormally reduced. A specific and enthusiastic question from every IT or ITES player is “when this downtrend will stop?” One can not easily guess the limit of this downtrend as it is again proven that ripple effect is a kind of end-to-begin effect chain that can not be easily stopped.
Downtrends of IT/ITES
As majority of the stock markets move dip into weaker curves, they reflect the collapse of the major growth segments of the decade such as Information Technology (IT) and Information Technology Enabled Services (ITES). This has in turn influenced the collapse of all the stock indices across the continents. It also resulted to the global melt down of economic and financial standards of almost all the countries. Some of the major research and survey firms have opined that global IT providers have faced one of the biggest hurdles for the decade. This downtrend has in fact affected their rapid growth rates and continuing huge profits from past few years.
This economic downtrend is further pressurizing the IT and ITES players to concentrate more on the cost cutting that is directly reflecting in increased flow off shore or out sourcing projects. This global down trend is also initiating numerous mergers and acquisitions and influencing major investment banks to enter into the commercial banking segment. This will in turn result to the reduced employee strength; lessen the demand for the vendors and decrease the IT or ITES budgets of the organizations. As the financial service sector players are some of the major customers of technology service providers, the downtrend has hit the most of ITES players. As majority of the technology clients are based in United States, the ITES service providers across the globe are affected. As per the renowned economists, this global downtrend is expected to continue through a few more years, which will further test the strengths of global IT and ITES companies.
This economic downtrend is further pressurizing the IT and ITES players to concentrate more on the cost cutting that is directly reflecting in increased flow off shore or out sourcing projects. This global down trend is also initiating numerous mergers and acquisitions and influencing major investment banks to enter into the commercial banking segment. This will in turn result to the reduced employee strength; lessen the demand for the vendors and decrease the IT or ITES budgets of the organizations. As the financial service sector players are some of the major customers of technology service providers, the downtrend has hit the most of ITES players. As majority of the technology clients are based in United States, the ITES service providers across the globe are affected. As per the renowned economists, this global downtrend is expected to continue through a few more years, which will further test the strengths of global IT and ITES companies.
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