Indian Outsourcers Will Be Hit by US Financial Crisis

[OhioChick]

Thursday, September 25, 2008 9:50 AM PDT
Indian outsourcers will be hit by the continuing crisis in the U.S. financial services sector, according to analysts.

"The key question is whether the crisis has already hit rock-bottom, or is there worse to come," said Sudin Apte, an analyst at Forrester Research, in an interview on Thursday.

At the current stage of the crisis, Forrester estimates that IT budgets in the banking, insurance and financial services sector will be cut by at least 15 percent to 20 percent.

The National Association of Software and Service Companies (Nasscom) in Delhi has also said that the crisis in the U.S. financial services sector will have an impact in the short term on Indian outsourcers, as new projects may get delayed. The trade body will not, however, decide until December whether to revise its target of US$60 billion in IT and business process outsourcing (BPO) exports by 2010.

For Indian outsourcers, the outlook is quite grim as some of its customers like Lehman Brothers are no longer around, said Siddharth Pai, a partner at outsourcing consultancy firm Technology Partners International. For those financial services companies that continue in business, software applications and new IT projects are not the top priority as they figure out what to do about the crisis, said Pai, who added that even ongoing IT projects may be slowed or stopped.

http://www.pcworld.com/businesscenter/article/151517/indian_outsourcers_will_be_hit_by_us_financial_crisis.html

:nopity:

[madmax]

1. I'll go one better

:nopity: :nopity:

[desktop]

2. Outsource, Insource, Indians now run Information Technology in America

Being in the business it has been sad to watch salaries plummet and jobs lost because of the Indian invasion of IT workers. Many shops in America are 90 to 100% Indian workers. Information Technology shops have become much like the housing construction business in Texas and other southern states. You are not really welcome and discouraged from working in the housing construction business in these states if you are not Hispanic. The same has become true in Information Technology if your are not Indian. Much like some patriotic Americans look to hire Americans, many Indians choose to hire their own Indian compadres, Americans have to get in the back of the line.

[madmax]

3. My son lost a great job with McGraw-Hill

when they hired Indians w/Visa's. He's never recovered from that job loss.

[OhioChick]

4. I'm sorry to hear that......

I've been struggling to hang on to what I have.