The Elephant in the Room

The 2009 Nasscom Leadership Forum will probably be the most exciting annual Nasscom event for several years – and crucial for helping to steer the direction of the industry. The hi-tech sector in India has a lot to look forward to – we have all seen the growth figures. I seem to recall a few years back when the President of India himself stood up and made a prediction of $60bn worth of exports – and it seemed a shocking and ambitious target at the time. Now, it’s just about in sight and the industry is looking for ways to achieve sustained growth in the face of a recession in the markets that have previously been the best customers – the USA and Europe.

So, what’s going to happen? When I talk to people in the industry they generally fall into two camps, as you might expect – optimists and pessimists. The optimists believe that as the credit crunch bites harder, companies will be looking to reduce cost and also to define their ongoing costs into the future by using an outsourcing agreement. So that would mean an economic downturn is a great thing for the industry, as it should lead to more business

The pessimists argue that companies operating in a recessionary environment will make fewer purchasing decisions, and will take far longer to make decisions to partner with suppliers, making the sales process very slow and difficult.

I know that this is going to be a hot topic at the conference – in the official debates and in the corridors. What do you, the blog audience, think?

2 Comments
  1. Pratap T P
  2. andy

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