US slowdown wiping out the Indian native IT outsourcing infrastructure

[OhioChick]

Hrithik Ratnagar
May 26, 2008





The lower value of US Dollar and an anemic growth in the US economy is having a severe bad effect of the Indian IT industry. Indian native IT outsourcing infrastructure has lost its pricing power – the worst thing that happen to any sector of the economy. The stable Rupees against US Dollar does not help in making easy currency differential related profits. The rising wages and turnover makes it difficult to deliver quality products. On top of that lower demand and budget cuts across the board is making it difficult for Indian IT companies to make money.

These IT outsourcing companies will not have a rapid collapse. Like Microsoft, Oracle, SAP, and others it will start going down very slowly. There is no place for any company in this world that cannot innovate on a continual basis. That is why Apple is doing the best among the techs.

Satyam Computers services, an outsourcing body shop of India, said it is worried about the impending slowdown in the US. Sources tell us that other IT outsourcing outfits are in deeper trouble.

"The US market is worrisome. Any slowdown there would impact us directly. The banking and financial services industry have been impacted and it is in deterioration mode," Satyam Chief Financial Officer V Srinivas told reporters.

"We are adopting a wait and watch approach towards the US market," he said.

The biggest problem for Indian IT and call center outsourcing companies is the coming Presidential election in November. If Obama wins, he will make sure Indian companies play fair game in ‘stealing US jobs’ by using manipulated currencies. The political picture in US will not allow Indian so called body shoppers and call center outfits to steal US jobs any more. That can be the nail in the coffin for the native Indian outsourcing companies.

http://www.indiadaily.com/editorial/19498.asp

[nebenaube]

1. TTech::Says_GOOD();

[OhioChick]

3. This Software Developer also Says "Good." n/t

[Hardrada]

2. God be praised!

[dixiegrrrrl]

4. sorry...couldn't understand a word it said

damn accents....

[Skittles]

5. GOOD F***ING RIDDANCE TO THEM n/t

[comtec]

6. I'm hard presses to even think about shedding a fake tear

honestly fuck em!
They stole our jobs, MY job, and I'm not going to cry for them.
They could have played fair, and everyone wins!
Cheap bastards send support to india, the good support stays in the US.
but all the BS they have done.. fuck em in the ass with a spikey metal rod!

It is a pity, they were finally starting to join the 2nd/1st world.
but the Indian government is so fucked up anyway, it would not have lasted.

Oh well in the end it's the fault of companies like microsloth and cistco for sending IT jobs there in the first place in the mass bulk they did.

India is teh shiv stabbed into our kidneys... but MS and them were holding the shiv's much like to roman senate around Caesar...

[Skittles]

9. they didn't steal anything

American fatcat executives willingly pimped off American jobs

[OhioChick]

10. Yep...

Blame the CEO's and execs.

[Myrina]

12. THANK YOU.

I don't begrudge any of the actual workers who, like us, are just trying to put food on their families.

Any blame for crashing the US (& possibly Indian, it appears) economy lies solely at the feet of the greedy Execs and Shareholders who wanted to maximize their own profits by undercutting labor costs & screwing their own employees.

[NikolaC]

13. Kindly Do Not Blame The People

The fault belongs with our politicians and the corporations who decided, in their destructive greed,to lay off so many Americans and ship the jobs over to India. The Indian people are just looking for work to support their families like most people in this world, same thing with the Mexicans and Chinese. I understand the bitterness, but please aim it in the direction where it truly belongs.

[ChromeFoundry]

7. saw this coming. n/t

[cliss]

8. Yeah, Baby.

When we start earning $1.00 per hour, the JOBS will come back.

[Joe Bacon]

11. I'll believe in "Free Trade" when Tom Friedman is outsourced!

Nobody deserves it more!