Mabuhay!
Today is
Saturday, May 19, 2012 in Manila.
News US Slowdown to Adversely Affect Indian Outsourcing Revenues (November 7, 2005 - GlobalSourcingNow) - According to IDC, a US-based research firm, a decline in IT spending in the US along with continued high oil prices may adversely affect outsourcing industry of India. The firm has based its analysis on high exposure of Indian IT export income to the US market.
The firm highlights that 68 percent of India’s USD 17.9 billion IT exports are to the US. This includes 71 percent of Infosys revenue, 68 percent of Satyam’s revenue, 62 percent of TCS’ revenue and 52 percent of Wipro’s revenue is derived from the US. IDC claims that IT spends estimate of the buyers has reduced from 6.1 percent in September to 2.8 percent in November. Further, the firm states that as a percentage of revenues IT budget of US corporate bodies is projected to fall from 1.7 percent this year against 1.9 percent in 2004. (Comment from O2P: This is an interesting one that puts something of a damper on the idea of unfettered growth of Indian outsourcing to the U.S. If it is going to be true of India, does that mean that the Philippines and other countries will suffer similar fates? My guess - and it is only that - is that India will do just fine, as will the Philippines, and that the threats to continued growth are exaggerated. No doubt at some point growth rates will moderate, but we are still some distance away from that. But then, one never knows.....) |
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