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The Smart Techie was renamed Siliconindia India Edition starting Feb 2012 to continue the nearly two decade track record of excellence of our US edition.

December - 2008 - issue > Slowdown Impact

Those with faith in the India model will benefit from the downturn

Sharad Sharma
Thursday, December 4, 2008
Sharad Sharma
At the very onset, let me say that I do not have the complete answer as to the impact of the global economic downturn on the IT industry in India. I will, however, share what I see around me.

Broadly, three things are happening, and all at the same time: some companies that had no or very limited presences in India are coming into the country in a major way; yet others are scaling up their operations, and yet others are re-looking their India policy.

In the past few days, teams of senior people from companies with virtually no presence in India whatsoever have met me and my colleagues. These companies are actively looking at setting up operations here, faced by the downturn and increasing squeeze back in the US.

Then there are traditional players, like Texas Instruments and Yahoo, with a proven India model. These are companies that swear by the efficacy and sustainability of the India model and are scaling up, despite the downturn.

I think out of 40 odd captives in the country, only around 10 will be looking at scaling up long-term. For captives to scale, they must have success stories to talk about to their parent companies and convince the latter to route more work here. But few captive centres actually have such stories.

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