That saying could prove particularly true for India's IT and IT-enabled services (IT-ITES) industry, where the US accounts for the largest share — at over 50 percent — of the Indian software and outsourcing market.
During a recent media briefing, Kemal Dervis, administrator at the UN Development Programme (UNDP), said the US slowdown might make it difficult for India to sustain its economic growth rate of eight percent. It has already had some impact on the Indian market. The rupee has been strengthening against the dollar for over a year now causing worries for Indian exporters.
"The implications for all of India's externally linked sectors are significant," Rajagopalachari, executive director at PricewaterhouseCoopers India, said. "The strongest and most immediate impact will be on the IT-ITES sector."
Though Milan Shethan, Ernst & Young India partner in business advisory services, noted that, while the budgets of US-based companies will undoubtedly be cut, the services of Indian companies that are adding value will be retained. Only those companies that haven't performed may lose out.
Over the last 12 months, Indian companies have been diversifying their risks by increasing their focus on non-US markets, such as Europe; by undertaking labor-cost rationalization by getting rid of poor-performing workforces and tightening recruitment policies; by reducing the average age of their workforce in order to reduce cost and improve overall profitability.
Source: ZDNet
During a recent media briefing, Kemal Dervis, administrator at the UN Development Programme (UNDP), said the US slowdown might make it difficult for India to sustain its economic growth rate of eight percent. It has already had some impact on the Indian market. The rupee has been strengthening against the dollar for over a year now causing worries for Indian exporters.
"The implications for all of India's externally linked sectors are significant," Rajagopalachari, executive director at PricewaterhouseCoopers India, said. "The strongest and most immediate impact will be on the IT-ITES sector."
Though Milan Shethan, Ernst & Young India partner in business advisory services, noted that, while the budgets of US-based companies will undoubtedly be cut, the services of Indian companies that are adding value will be retained. Only those companies that haven't performed may lose out.
Over the last 12 months, Indian companies have been diversifying their risks by increasing their focus on non-US markets, such as Europe; by undertaking labor-cost rationalization by getting rid of poor-performing workforces and tightening recruitment policies; by reducing the average age of their workforce in order to reduce cost and improve overall profitability.
Source: ZDNet
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