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'The days excess are over'
September 26, 2008
The days of excess and exuberance are truly over. The market is going to be tough. It is going to be a bloodbath environment. But for a lean company like us, we have the culture to survive this environment.
From the country's point of view, what kind of impact do you see?
I believe three things will happen:
Revenues will drop in the IT sector. Indian IT industry will lose at least $1billion;
Indian IT companies have been hiring in big thousands and ahead of time. This is likely to slowdown. Campus hires could get affected; and
The third worrisome factor from an Indian perspective is that once the profit margins begin to shrink, all the Indian companies will begin to optimise everything. This will impact the broader economy -- taxi cabs, security services, canteen services; all will feel the pinch. The eco support system (for the IT industry) will also have to share the pain. It is going to be a tighter economic environment here.
Image: New one-dollar bill notes pass through a printing press at the Bureau of Engraving and Printing in Washington, DC. Alex Wong/Getty Images
Also read: India's 15 best cities for IT-BPO growth
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