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.
Friday, February 20, 2009
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.
Saturday, January 10, 2009
DOWNTRENDS OF IT/ITES – HOW TO OVERCOME OUT OF THE SCENARIO
Most of the outsourcing business in the world comes from the US. The slowdown of the financial and economic sector of US affects enormously in the world especially in India because over 50% of the US share goes to the Indian software and outsourcing markets. The impact on this slowdown affects IT and ITES firms more.
The slowdown of US financial and economic sector is a prolonged one. Structural readjustments are the main reason for slowing down the financial and economy sector of US while economic scenario of the global is caused through changing the currency and financial market fundamentals. The implications are significant for all the sectors of India which are linked on it. The strongest impact would be affected on the sector of IT and ITES.
The downtrends may lose out the companies that yet haven’t show the performance. For example, if an US firm has 20 vendors today, out of them 15 are located in India; the firm may fancy deducting the number to 11 or 12. So, many employees become jobless. Moreover the budget will be decreased about 15% by US clients.
The economic crisis of US is structural and therefore in long term and the trend of low-cost off-shoring will increase.
Indian IT-ITES companies, which are also, rationalize of labor-cost by getting rid of unused labor and employment policies tightening. There has been a focus on increasing the leverage sharply at off-shore in projects to get better profitability.
The talent pool of India is getting richer and only a matter of time, the Indian IT-ITES industry overcomes the slowdown glitch of US.
The slowdown of US financial and economic sector is a prolonged one. Structural readjustments are the main reason for slowing down the financial and economy sector of US while economic scenario of the global is caused through changing the currency and financial market fundamentals. The implications are significant for all the sectors of India which are linked on it. The strongest impact would be affected on the sector of IT and ITES.
The downtrends may lose out the companies that yet haven’t show the performance. For example, if an US firm has 20 vendors today, out of them 15 are located in India; the firm may fancy deducting the number to 11 or 12. So, many employees become jobless. Moreover the budget will be decreased about 15% by US clients.
The economic crisis of US is structural and therefore in long term and the trend of low-cost off-shoring will increase.
Indian IT-ITES companies, which are also, rationalize of labor-cost by getting rid of unused labor and employment policies tightening. There has been a focus on increasing the leverage sharply at off-shore in projects to get better profitability.
The talent pool of India is getting richer and only a matter of time, the Indian IT-ITES industry overcomes the slowdown glitch of US.
Thursday, January 1, 2009
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.
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.
Subscribe to:
Posts (Atom)