The document analyzes the impact of the global recession on IT investments and outsourcing. It finds that around 43% of western companies cut back on IT spending as the US economy slowed. Both India and China saw downward trends in IT investments and outsourcing from developed countries due to lower overall IT spending during the recession. However, the conclusion is that IT and outsourcing will still provide cost benefits to companies in the long run and investments are expected to grow again in coming years, albeit at a slower pace than prior to the recession.

1. Global Recession and Impact on IT Industry INFORMATION SYSTEMS RESEARCH & WRITING Date: October 14, 2010 © SAP 2008 / Page 1

2. GLOBAL RECESSION RESEARCH TOPIC GLOBAL RECESSION – IMPACT ON IT INVESTMENTS AND OUTSOURCING

3. GLOBAL RECESSION AIM OF THE RESEARCH PURPOSE ANALYSE THE IMPACT OF GLOBAL RECESSION ON IT INVESTMENTS AND OUTSOURCING BY REVIEWING AFFECTS ON DIFFERENT ECONOMIES

6. GLOBAL RECESSION WHAT IS RECESSION DECLINE IN A COUNTRY’S GDP FOR TWO OR MORE CONSECUTIVE QUARTERS OF A YEAR PRECEDED BY SEVERAL QUARTERS OF SLOWING DOWN

7. GLOBAL RECESSION CURRENT GLOBAL ECONOMIC SCENARIO DOWNFALL TREND IN 2008 AND MOVING UP IN 2009 AND 2010

8. GLOBAL RECESSION STRUCTURE OF GLOBAL IT INDUSTRY MARKET SHARE SOURCE : Forrester

9. GLOBAL RECESSION GLOBAL OUTSOURCING SCENARIO – DIFFERENT BPO SECTORS

10. GLOBAL RECESSION TWO FAVORITE OUTSOURCING DESTINATIONS - INDIA AND CHINA Number of IT Outsourcing Companies in India 15718 in India – 1258 in China

11. GLOBAL RECESSION IMPACT OF RECESSION ON IT INVESTMENTS AND OUTSOURCING - INDIA INDIA - DOWNWARD SLOPING HIRING TREND IN IT SECTOR DUE TO LOW IT INVESTMENTS AND FALL IN OUTSOURCING

12. GLOBAL RECESSION IMPACT OF RECESSION ON IT INVESTMENTS AND OUTSOURCING - CHINA CHINA - DOWNWARD PATTERN IN IT INVESTMENTS FROM US AND EUROPE

14. SLOWING U.S. ECONOMY NEGOTIATING LOWER RATES WITH SUPPLIERS

15. IT SERVICES AND OUTSOURCING MARKET UNDER STRUCTURAL TRANSFORMATION WHICH WILL AFFECT THE IT SERVICE PROVIDERS

17. SAP SCHEDULEMANAGER QUESTIONS QUESTIONS??