Monday, January 21, 2008

Oooh, IT is dead

or so croon the stock marketeers (and many others). As this edit in Mint says

The bad news is that analysts, some of whom want to be writers, and writers, many of whom want to be analysts, have continued to use the same language they have always used to analyse the numbers of IT companies

Brilliant. As far as the market goes, it has just been about meeting targets quarter on quarter. You miss a step, you lose market cap. Unfortunately, nobody has no clue about the direction that Indian IT going to take. Remember, it has already gone through a couple of torrid times and come out shining. So, SAAS has been a market in the making ever since I can remember, as has package implementation and there are a few similar items that keep appearing in reports.

But heres a question. If the US market does face a slowdown and there are a cost pressures where will the work go to? No prizes for guessing. Perhaps if there is a slowdown, IT cos might buy a company or two - how does that sound? Maybe, maybe, just maybe one of the companies might just stick their neck out and buy a product company or two (as some people want them to)? Perhaps they will use some of the innovations here to create something there? Well, truth be told, what IT companies do today is but a small piece of the entire range of work that is outsourceable. So, as the article rightly says, the future direction of IT is not a single one, it is a possible multiple directions.

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