Originally posted by Ram Deshpande:
Though US recession going to HIT Indian IT market, NRN has quoted differently.
US recession is another opportunity to INDIAN IT giant�s to enforce many foreign companies to do more and more OFFSHORE.
And after every recession like situation will enforce foreign companies to look cheaper labor/labour comprising QUALITY which will be improved later time.
And it�s already started�
Currently UK has similar situation and many clients forced to do more OFFSHORE due to recession.
Post the 2000 US recession and dotcom bubble burst, there has been an increase in outsourcing to India and other countries. Also, after the 2000 and decline in US Dollar, Indian companies have aligned their business models to avoid a region specific impact on their businesses. Most have gone for expanding business to Europe and Africa, change in billing currency from the client and variable pay for employees.
I have been through the 2000 recession, so my guess is that this recession should not hit Indian IT as bad as in the 2000.
Though, I personally think there are chances of a US recession happening.