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.