Would US, Europe showdown impact the Indian IT industry?
Added On:7/10/2012 4:09:00 PM
Indian IT firms including NIIT, Hexaware, MindTree are getting worried about rising inflation and slow growth in Europe and the US, which could hamper their growth chart in the coming years, sources reported.
Seems, the economic environment, pricing pressure and decreased employee utilization rate are negatively impacting revenues and operating results of Indian IT companies.
It is found, the top players of the $100 billion IT industry have developed an unhealthy bench strength, which is likely to grow further by next quarter.
It is worth noticing, bench strength in the IT industry is defined as the mass of employees kept secure for emergency use in future projects. Generally, any IT company keeps about 15 percent or higher workforce on bench, which is kept trained and ready for projects.
But, in the current scenario, IT companies are not ready to keep 15 percent or higher workforce on bench.
In comparison to top-tier IT companies , mid caps such as NIIT Technologies, Hexaware and MindTree are running slimmer operations, that too with almost small bench strengths.
Slow growth as well as shortage of projects from Europe and US has left engineers with lack of work for more than 6 months.
Further, it is expected that utilization rates of top IT companies will dip further this year.
Microsoft and cellphone maker Nokia have been in detailed talks about an acquisition of the Finnish company's device business, but the discussions have apparently broken down, according to a report in...
ASUSTeK Computer Inc., a multinational computer hardware and electronics company has recently announced the appointment of IT distributor Redington India as its authorized Distributor for its Intel ba...
Information provided on this page has been independently obtained from sources believed to be reliable. However, such information may include inaccuracies, errors or omissions.ITVoir.com, and its affiliates, information providers or content providers, shall have no liability to you or third parties for the accuracy, completeness, timeliness or correct sequencing of information available on this page, or for any decision made or action taken by you in reliance upon such information, or for the delay or interruption of such information. ITVoir.com,its affiliates, information providers and content providers shall have no liability for investment decisions or other actions taken or made by you based on the information provided.