Indian IT to see few mega deals amid recession
By siliconindia   |   Thursday, 12 February 2009, 17:25 IST   |    3 Comments
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Indian IT to see few mega deals amid recession
Mumbai: As the floundering economy tends to be recovered only by 2010, Indian IT companies are finding it hard to get big deals worth $1 billion and above, forcing them to be satisfied with small deals. Decision making in Europe and the U.S. has come to a complete standstill as a result of recession, and larger deals are taking a long time to get closed."There will be very few mega deals going forward. Lot of deals are still happening but they are smaller kinds of deals," said Dennis McGuire, Chairman Emeritus, TPI. For the last year-and-a-half, no Indian IT firm has managed to get a deal worth $1 billion and above. The last big deal was signed between Tata Consultancy Services and the Netherlands-based Nielsen Company in October 2007, for $1.2 billion. Foreseeing a recovery by the end of 2009, Cisco Chief Executive John Chambers called for increased co-ordination between central banks and various governments. Earlier, Minister of Commerce and Industry, Kamal Nath had said that the current economic downturn would prompt Indian IT firms to strengthen presence in the Indian domestic IT market. "The Indian IT industry has had many years of spectacular growth. When that happens, you end up ignoring a lot of inefficiencies in your systems, which you ignore because you are doing well," said Nandan Nilekani, Vice-Chairman of Infosys Technologies.

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