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Despite Barack Obama’s explicit threats about not letting American off shoring companies enjoy tax benefits any more Indian IT sector is looking hopeful and jubilant. The reason behind this is the successful deals that some of the Indian IT majors have clenched this year. These companies include Tata Consultancy Services, Wipro, and HCL Technologies.
The success story of these reputed IT companies make the Indian businessmen hope that time are going to change finally and the dwindling economy will soon see a steady recovery. These assumptions also get stronger when one sees that other companies dealing in Pharma, retail, and energy and utility have also earned some profits.
Many experts think that the quarter of April to June may see some more positive developments. The finalizing of deals by then IT companies is definitely a better result compared to that of last financial year 2008. It was during that period that Wipro has seen a severe drop in its client’s tally.
Right now the IT industry is expecting a growth of about 5 to 8 percent. This would be definitely better than the last quarter of the previous financial year. That is why people like Girish Paranjpe are hopeful of “a phase of stabilization” that is probably not far away.
However, there are other reputed companies that still want to wait and watch and Infosys Technologies is one of them. But still many are hoping that by the end of the third quarter of the current Financial Year the industry will witness a recovery.
Anyway encouraged by this trend many IT companies are now providing various incentives to their clients so they continue to give them steady business. That is why most of the deals include cost cutting options, offer of doing some of the research work like feasibility studies for free, and making contracts that have fixed price.
Companies like Infosys believe during these tough times nothing will work better than flexibility. These companies are also making an attempt to use its bench strength as well. That is why right now the total utilization percentage has gone up to 70 from the previous 65 percent.
We hope that the assumptions ad expectations will become true and Indian IT sector will again rule the world.