Most Recession Hit IT Industry
Accenture
Adaequare Inc
Alliance Global
Amadeus Software
Amdocs Development
American Megatrends
AT & T Global Business Services
Barclays Technology Centre Blackapple Solutions LLC
Blue star Infotech Limited
BMC Software India Private Limited
Boeing
Broadcom
CA Technologies
Capgemini
Cisco Systems India
CMC Limited
Cognizant Technology Solution
Deloitte Consulting India
eBay, Inc
Franklin Templeton International
GENPACT
HCL Infosystems Ltd
HCL Technologies Limited
IBM
Info Logitech Inc
Mastek Limited
Meridium, Inc.
Microchip Technology, Inc.
Microland Limited
Oracle
Red Hat
Sapient
Tech Mahindra Limited
Wipro BPO
Wipro Infotech
Wipro Ltd
Yahoo
Zensar Technologies
Less Recession Affected IT Industry
Atos Origin
Blue star Infotech Limited
Bureau Veritas India Private Limited
CSC India
CSR
Fidelity Business services
Hewlett Packard
iGATE
Intel Corporation
Kenexa
Microchip Technology, Inc.
Microland Limited
NetApp
NIIT Limited
S2 infotech
TATA Consultancy Services Ltd.
Tata Technologies Limited
Thomson Reuters
Xilinx India Technology Services Pvt Ltd
In our earlier Post ‘The Reason for Recession, We have referred to the Industries worst affected by this phenomenon in Asia as-well-as Globally. These Industries are Aviation, Banking, Hospitality, Real Estate, Banking along with IT (Information Technology). In the subsequent Posts, we will be taking these Industries one-by-one and explain what has been the deep impact of Recession on the Industry and its people.
We will start with the Industry which was the starting Point of this Disease. The IT and ITES (Information Technology Enabled Services) Industry.
Our World Economy is hugely impacted by whatever happens in the United States. The reason being that around 20% of it is represented by America. That means the rest of the World combined Economy is 80%. Hence, the World Economy gets affected by the Events happening in US’ Economy. Needless to say, the problems in IT Industry and others too started in US and later engulfed the whole World.
Earlier in 2008, when Recession had its first say in India, many Industries were getting affected by the Financial Crunch. But still, the IT Industry was immune to its effect and the general feeling was that people will cut on other general Expenses but will still buy Mobile Phones, Laptops, and other Gadgets. It was assumed that the Credit Crunch will not affect the Spending habits on Technology Products.
However, the IT Industry began to take a hit by the end of 2008. By then, Recession had enveloped almost everybody and the assumptions of people about the immunity of IT Industry to it were also proved wrong. The Technology Industry was not Recession-proof. Many big Names in the Technology space started losing a major Percentage of their Net Worth. The Shares were taking a 10-Year to 13-Year low hit and Companies began laying off thousands of Workers.
Though some Firms who were good on Cash remained unaffected initially, but by the middle of 2009, the situation was the same for everyone. Funnies thing even most of the Employees working for these IT companies were not aware about Great Recession in Global IT Industry till they got Fired :(
One major challenge for the IT Industry was the lack of available Funding. Since the Banking Sector also came under the effect of Recession, the Funding of various Innovative ideas was halted. The Demand for basic IT Services was intact, but that for more developed Applications came down. IT and related Companies came under great Pressure to cut Costs, which they did by reducing Headcounts and by Infrastructure-sharing.
Many Clients began shelving many long-term Projects. More-and-more Employees were on-desk which affected their monthly Wages. The Supply of IT Professionals was more in comparison to the Work available. In simple Words, the Demand was less than the Supply which resulted in huge Job cuts. Many Employees too started leaving the Companies and switched to Industries which were better Recession-resistant.
8,000 People On The Bench At MicroSoft
16,000 People On The Bench At Infosys
Infosys offered Jobs to 16,000 college graduates last year and plans to hire more this year. But with scant work to give them, the company is doubling the length of their training to six months and assigning them mock projects to hone their skills. Though that’s not cheap, Infosys says it’s worth the investment.”
18,000 People On The Bench At TCS
Teak Bench Company
The Garden Bench Company
Garden Bench with Table
Name Bench
Oak Benches Outdoor
Oak Benches UK
CPA Workbench
This situation was rampant in the IT Industry worldwide and was visible till the start of 2011 when things again started looking up. But, as of now, after two years, as 2013 is coming to an end, Recession is again raising its Head.
We have a very good Example before us of the happenings in 2008 & thereafter. The Industry must learn through that and should build up ways to fight this Season of Recession in a better way. Hope this time when Recession comes, We will not see many IT Professionals Jobless.
Blog By :
Pragya Banerjee
MBA (Finance); 7+ years of work experience
email: pragyablogger@gmail.com
pragyasonal@gmail.com
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http://youtu.be/S3qi9aztubo
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