July 26, 2010 -
PRLog -- After the 2009 economic slowdown, which witnessed IT budget cuts, delayed projects and layoffs, 2010 has brought some respite to the Indian IT sector. Currently, the Indian IT Outsourcing industry is witnessing an improvement in the business environment as the proportion of discretionary spend is rising, indicating growing client confidence. As cost efficiency is of prime importance to clients, the quantum of outsourcing services routed towards India has started picking up. As per NASSCOM, the Indian IT industry is estimated to garner revenues of USD73.1 bn in FY2010 accounting for 6.1% of India’s GDP. The recently announced Q1 FY11 results by a few tier I players in India viz. TCS, Infosys do hint towards an improving business environment especially from US and emerging economies. However, the ongoing European Union (EU) debt crisis and the resultant impact on the EUR and GBP exchange rate movements against the USD have hit the export earnings of the Indian IT outsourcers. Going forward, although the decision making cycle in EU will remain slow, the outsourcing demand momentum is expected to pick up benefiting players in India.
Going forward, the business environment is expected to grow further with increasing proportion of IT spending, huge demand inflow as client confidence is regaining. This has been well indicated in the future guidance given by the leaders in the industry.
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