IndoCarib
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do you have the ability to follow through and read the remaining part of the woes of indian IT and outsourcing industry as a whole and check them against the april reuters article!?
You should read on ;
Outsourcing theme for the Indian economy is durable in the long term: Robert Parker
ET Now: Firstly the biggest IT giant in India, Infosys came out with a very disappointing set of numbers. Does it raise doubts about the Indian outsourcing story that has had a great potential in the past or you think that in this competitive environment, TCS or HCL Technologies may take over & hence it is a shift in leadership in the sector that can change the view on the sector overall?
Robert Parker: The outsourcing theme for the Indian economy is certainly is durable in the long term. One of the major clients for the outsourcing industry is the European and American financial sector. Given the downturn of activity amongst the investment banks, brokerage firms, inevitably the flow of business from the financial sector to outsourcing companies such as Infosys will be affected.
So in the short term inevitably, outsourcing is still a valid concept but volumes and profitability will be down. One positive which obviously improves the economics of outsourcing has been the reversal in the Indian rupee which improves the economics of outsourcing.
Outsourcing theme for the Indian economy is durable in the long term: Robert Parker - The Economic Times