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Impact Of Recession On Indian It


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Impact Of Recession On Indian It

  1. 3. A Recession is a contraction phase of the business cycle The Financial press often uses the recessionary definition of Two or more consecutive quarters of declining Gross Domestic Product (GDP). GDP is defined as the total market of all final goods and services produced within a country in a given period of time.
  3. 7. A SLOWDOWN IN A US ECONOMY IS BAD NEWS FOR INDIA . <ul><li>Indian companies have major outsourcing deal from US </li></ul><ul><li>Indian exports to the US have grown substantially over the years. </li></ul><ul><li>Indian IT companies with big tickets deals in the US would see their profit margin shrinking . </li></ul>Outsourcing market is suffering from the recession in whole world and Indian IT sector is highly dependent on outsourcing mainly 60% on US.
  4. 8. <ul><li>IT industries are confronting heavy loss due to fall down of global economy </li></ul><ul><li>IT companies are predicted a drop of 15 % in growth from 30 % last year in BPO sector. </li></ul><ul><li>As per NASSCOM BPO sector employs 700000 people and is projected to cut 250000 jobs in the fiscal year 2009-10. </li></ul><ul><li>IT projects that are halfway to completion , or companies that are stuck with cash flow issues, will run out of cash. </li></ul>
  5. 9. IMPACT OF RECESSION ON EXPORT <ul><li>Worst hit by a recession </li></ul><ul><li>Number of people losing jobs mounts to 1.5 million (feb 09) </li></ul><ul><li>(Employs about 150 million people) </li></ul><ul><li>Exports plummeted by as much as 20%. </li></ul><ul><li>As such GDP is expected to decrease by 2% - 2.5% </li></ul>
  6. 10. OPPURTUNITIES FOR INDIAN IT DUE TO U.S. RECESSION . <ul><li>Great time to start new venture </li></ul><ul><li>Western countries have started viewing India as good place to outsource big research work , website development , designing work etc. </li></ul><ul><li>By march 2008 , India had received outsourcing deals worth $7 billion from US as against $6.2 billion in the previous year. </li></ul>
  7. 11. IMPACT OF RECESSION ON STOCK MARKET <ul><li>Crude prices fell down by 70 % </li></ul><ul><li>Sensex crashes by 60% - 65% </li></ul><ul><li>Rupee weakening against dollar </li></ul>Low liquidity in the market
  9. 13. <ul><li>In the IT sector, there should be correction in salary offerings rather than job cutting. </li></ul><ul><li>Taxes including excise duty and custom duty should be reduced to lighten the adverse effect of economic crunch on various industries </li></ul><ul><li>IT industry has been largely hit by recession , resulting in lay offs . But people with skills are required in the industry. </li></ul><ul><li>Come out with innovative strategies for CRM. </li></ul>CONCLUSION (Customer Relationship Management)
  10. 14. THANK YOU Here wishing u a safe voyage as we ride the waves of this recession…….