Saturday, September 20, 2008

Indian IT meltdown financial edition

Got a link to this (Thanks Sumant) today on the effects of the Financial meltdown on Indian IT (No, Indian IT wont end just as yet).

Sure, the cost cutting mode that these companies were in thanks to the rising rupee will now continue despite a falling rupee. Because business as a whole will be, slightly, harder to get. Also remember that much of these entities, bailed out, or otherwise will be looking to further contain costs, so work will continue to flow to India. So, in the medium run, there will be more work, but mostly fixed cost work and in the long run cost pressures will continue. No more profligate spending on IT. Expect the biggies to get bigger contracts in the long run.

The article says SAAS will be preferred. My sense says that the Google cloud will become popular at a personal level, but SAAS will never become Bahu. We have been talking about SAAS for umpteen years now and this is a gone case at the company level.

Yes, the trend towards open source will continue and I hope Indian IT cos take to it with more heart than they have till date.

So, for those who thought that this, will end Indian IT. No it wont.

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