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Challenges in Indian IT industries - 6-Jun-2009
The Indian IT industries have begun seriously to realize the murky economical condition of America. Information regarding the collapse of the IT Market and the consequent downfall of the money market has been continuously reaching us. Because of this stringent economical condition, the IT industries are interested only in retaining its profit already accrued and focus their attention in their further development
More than half of the revenue of the Indian ITs are from the vicinity of America. Due to the present economical crisis in America, the Indian ITs are forced to go in for a liberalization by making a discount in their service charges and constricting the contract amount.
The change in American regime is against the policy of outsourcing. This will also create more problems to IT sector. However, the ITs which have shown terrific growth every quarter, have also crossed multifarious problems before they established themselves.
We now observe that this field has lost its gusto. As per the assessment of the World Bank that in the year 2009, the development of world economy will be only 0.9%, and especially in America, Japan and Europe the development will be below 0.5%.
It is to be noted that nearly 85-90% revenue of ITs is only from these regions. That is why, the recent assessment of the World Bank has caused concern to India.
To get rid off this economical strain, the international organizations are engaged in activities such as purchasing and restoring the organizations. Because of this, the five top Indian IT industries are in severe pressure. These organizations with international clientele have to implement and adopt the changes immediately. Moreover, they have to accept the stringent conditions insisted while signing the contract for new projects. This affects their growth ratio also.
The Indian IT organizations have to face and manage at the same time problems like slash in revenue, fewer job opportunities, squash of outsourcing and rehabilitation of organizations. Hence, there is a wide-spread austerity measures practised in many IT industries, like salary cut.
Slicing in new appointments, withdrawing the facilities offered to the existing staff, intense struggle to hold the customers are some of the problems they face. However, there is a blessing in disguise: the rising value of the Indian Money against the American Dollar is anticipated to amend somewhat the collapse of revenue.
Besides, the IT industries consistently and hopefuly opt new procedures like cutting superfluous expenditure, controlling expenses and planning new marketing techniques. The IT industries now act amidst new hopes and trust. This is the only ray of hope to those who wish to join IT industry in future.
