IT spending may hit $2.5 trillion by 2011 as per Gartner, IT companies since its inception has had the luxury of strong demand from US, but with the financial sector crisis happening the IT spending budgets have come down. Now in 2011 confidence is being restored and they are again spending on IT but with a very prudent approach on every penny spent. CIO designation is gaining prominence because he/she can guide the company in maximizing the returns on amount invested. IT is an enabler, but it rides on technology, hence throught their spending companies are trying to maintain Technology as their competitive advantage. Now let us see the IT market , around 20-30%(at max) revenue of IT companies comes from Euro region and if this is affected their share is affected. Companies like Infosys are trying to formulate different business models as per the respective countries. Revenue generation from this region has been affected, but companies are selling value propositions to clients which are difficult to resist. Euro debt crises have two implications on IT: from public and private view. From public view the governments are already sitting on huge deficits and trying to curtail their unscrupulous expenditure, now it depends on Individual European nations as to how they classify this expense. It can’t be totally taken away but a depressed investment will be there hence a depressed demand for IT. From private view, private players in Europe cannot deny the role of technology and how big a competitive edge it can yield for enterprise. The investment in IT will be there but on an incremental and modular approach and every investment made will invite huge amount of deliberation from the enterprise side. Companies have to prove that value additions are always delivered with every value promised and delivered. Hence IT industry is about fight of value additions. Surpassing client needs is the only way to rope money back in IT. Inflation Management through Central banks will regulate Monetary policy and is inflation and hence rates are kept under control, no denying total investments and hence IT investment will increase.
In the wake of the european financial dip, Uk serves as a very good example of how the BPO and KPO industries are affected leading to job problems in India. The primary thrust and boost for IT is through the exports, it has been contributing significantly to the gdp of India. The share of it is soemthign wwe cant ignore , but the places specifically which have been the hubs for the BPO to develop are cities like Pune , Mumbai , Bangalore Hyderabad, The cost reduction earlier the bpo's could obtain was nothing less then 30 to 40 % , however as the difference is squeezed to 20 % or less. The firms like santander bank and british telecom are shifting base to other avenues from India due to the rising land cost in cities of India and increased salary demand and employee attrition , apart from that the primary and predominant reson is the job creation which is vital for england and not to outsource the jobs. This has lead to closing of BPO'S in India and curtailing of jobs, the closing of operations has lead to reduced contribution in GDP & export revenue for the government as Europe has a larger pie of the share as far as outsourcing from India is concerned, for now with the impetus by teh EU on giving stimulus to the european countries like greece & Spain the future of outsourcing stays uncertain.
IT spending may hit $2.5 trillion by 2011 as per Gartner, IT companies since its inception has had the luxury of strong demand from US, but with the financial sector crisis happening the IT spending budgets have come down. Now in 2011 confidence is being restored and they are again spending on IT but with a very prudent approach on every penny spent. CIO designation is gaining prominence because he/she can guide the company in maximizing the returns on amount invested. IT is an enabler, but it rides on technology, hence throught their spending companies are trying to maintain Technology as their competitive advantage. Now let us see the IT market , around 20-30%(at max) revenue of IT companies comes from Euro region and if this is affected their share is affected. Companies like Infosys are trying to formulate different business models as per the respective countries. Revenue generation from this region has been affected, but companies are selling value propositions to clients which are difficult to resist. Euro debt crises have two implications on IT: from public and private view. From public view the governments are already sitting on huge deficits and trying to curtail their unscrupulous expenditure, now it depends on Individual European nations as to how they classify this expense. It can’t be totally taken away but a depressed investment will be there hence a depressed demand for IT. From private view, private players in Europe cannot deny the role of technology and how big a competitive edge it can yield for enterprise. The investment in IT will be there but on an incremental and modular approach and every investment made will invite huge amount of deliberation from the enterprise side. Companies have to prove that value additions are always delivered with every value promised and delivered. Hence IT industry is about fight of value additions. Surpassing client needs is the only way to rope money back in IT.
ReplyDeleteInflation Management through Central banks will regulate Monetary policy and is inflation and hence rates are kept under control, no denying total investments and hence IT investment will increase.
In the wake of the european financial dip, Uk serves as a very good example of how the BPO and KPO industries are affected leading to job problems in India. The primary thrust and boost for IT is through the exports, it has been contributing significantly to the gdp of India.
ReplyDeleteThe share of it is soemthign wwe cant ignore , but the places specifically which have been the hubs for the BPO to develop are cities like Pune , Mumbai , Bangalore Hyderabad, The cost reduction earlier the bpo's could obtain was nothing less then 30 to 40 % , however as the difference is squeezed to 20 % or less. The firms like santander bank and british telecom are shifting base to other avenues from India
due to the rising land cost in cities of India and increased salary demand and employee attrition , apart from that the primary and predominant reson is the job creation which is vital for england and not to outsource the jobs.
This has lead to closing of BPO'S in India and curtailing of jobs, the closing of operations has lead to reduced contribution in GDP & export revenue for the government as Europe has a larger pie of the share as far as outsourcing from India is concerned, for now with the impetus by teh EU on giving stimulus to the european countries like greece & Spain the future of outsourcing stays uncertain.