« King Gyanendra will not leave Nepal. | Main | A 'Gurkha widow' still waits to meet her husband »

Apr24
India's software giants miss profit margin

In the face of continuing economic recession in the USA, IT giants in India are losing their profit margins. Tata Consultancy Service missed its profit margin in the last quarter.Tata consultancy Service (TCS), a subsidiary of Tata group, saw 10% fall in its share price after news spread out that some of its major clients were cutting down their IT budgets. India’s fourth biggest IT firm, Satyam, also failed to reach its profit margin in the first quarter of 2008.

Not only, TCS or Satyam, WIPRO, Infosys, all the major Indian IT firms observed such failure. BBC reports:

TCS - and its smaller rivals Wipro, Infosys and Satyam - have blossomed as US multinationals have shifted services, including complex back-office IT functions, to India because of the comparatively low costs and wealth of English speakers.

Its profits have helped to strengthen the finances of its parent Tata Holdings, which recently bought Ford's British luxury subsidiaries Jaguar and Land Rover and has business interests ranging from steel mills and power generation to tea.

But analysts say there are now signs that the boom is petering out as rising household bills and tighter lending conditions are strangling the US economy and forcing companies to delay spending plans.

Indian IT workers 

It is true that the current recession in the US economy have checked the growth of Indian IT firms but it will not stop. At present, very few countries can produce large pool of IT workers skilled in English language like India. So, American companies will continue their outsourcing. However, from now on, Indian firms have to look into other countries like China, Japan or any European country that are interested to outsource to India and the biggest challenge in this case will also be the language. Indian government and software should come together to remove this obstacle.

Related articles:

BBC (1)

BBC (2)


0 Comments/Trackbacks




submit a trackback

TrackBack URL for this entry:

post a comment

Name, Email Address, and URL are not required fields.





Comment Preview

« King Gyanendra will not leave Nepal. | Main | A 'Gurkha widow' still waits to meet her husband »

Advertise

recent comments

    sponsored ads



    subscribe


    Prefer Email?
    Subscribe below-

    Enter your Email:


    Powered by FeedBlitz What's this?

    Current News

    Support This Blog

    blogroll


    business social media

    Use these fast growing business social media sites to promote your business, feature your products, spotlight your business leaders, create links, and drive traffic back to your company site, all for free!

    BIZZlogos - Add your logo - free link to your site
    BIZZphotos - Add photos of your products and people
    BIZZprofiles - Submit your profile and build your online visibility
    BIZZspotlight - Spotlight your business with free links
    BIZZvideos - Videos about businesses, products and business people.
    BIZZbites - "Digg" for Business - Submit your articles and posts

    Know More Media - International Business

    know more media network

    View Network Map

    Network Feed List (OPML)

    Know More Media Network
    Feed


    we support unitus

    PRWeb

    Influencer



    SouthAsiaBiz is a member of the Know More Media network of business related blogs.

    Here are some current headlines from some of our business publications:

    ProductivityGoal

    CallCenterScript

    AdHurl

    TheBizofKnowledge

    LandingTheDeal

    CustomersAreAlways

    HealthCareVox

    BrainBasedBusiness

    TheInsurancePolicy

    MarketingBlurb