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.