IT slows down
1 min read 26 Jan 2009, 11:48 PM ISTIT slows down
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New Delhi: The impact of financial turmoil and worsening economic environment has begun to show on the balance sheets of the Indian IT companies.
IT bellwether Infosys posted a net profit of ₹ 1,641 crores, ahead of HCL Technologies that posted a net profit of ₹ 373 crores in the third quarter. Wipro posted a net profit of ₹ 1,004 crore and TCS ₹ 1,352 crore.
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cb18ca66-ebca-11dd-9ce3-000b5dabf636.flvThe IT sector was hit hard after the banking, financial services and insurance space crumbled in the US. More than 40 percent of Indian software revenue comes from these sectors.
And the coming quarters are not expected to be easy. Although, sectors like infrastructure management services, engineering services, outsourced research and development and application maintenance and development offer some prospects of growth.
As businesses across the world closely scrutinize their IT budgets, volumes and margins for IT companies will be under pressure.
The tough economic conditions have forced the major IT companies to lower their growth forecast. Things would be even tougher for smaller software makers.
