the future of IT industry..!

The information technology industry had been growing in leaps and bounds before the crisis. The period from 2003- 2008 saw almost 30% per annum growth in revenues for major companies. The past year was not good for the industry as most of the major clients deferred their investments in IT infrastructure . Secondly, the huge fluctuations in the exchange rate made it difficult to conduct business. Finally, the increased competition from other low cost countries like Vietnam, Bangladesh , Hungary , Russia etc have added to the woes of the industry. The tax holiday granted to IT industry would end in 2011 and that may severely affect profit after tax.

However, there is no need to become pessimist. Most of our IT firms have made substantial investments to develop higher end technologies . Its just a matter of few years when our portfolio of exports would include higher end services and with some concerted effort we might have product-based companies which would command higher margins. Secondly, we have the largest number of english speaking people among emerging countries which provides us an added advantage compared to countries like China. Finally,there has been attempt by this government to improve the quality of higher education by opening new world class universities. It is hoped that the IT industry will emerge stronger after this crisis.!