U.S. Companies Delay Investments for Indian IT Firms

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Bangalore: The U.S. firms are reducing the budget for Information technology companies in India, in addition to delaying their investments. Majority of the corporate leaders are not ready to come up with big-ticket technology investments following the global financial crisis.



They are asking us to do more and more and more with less," says Ricardo Bartra, CEO of DHL Global Forwarding, a unit of Deutsche Post. He also expressed his concerns over the cutting of IT budgets, as his budget was significantly lower than that of his forerunners, reports Wall Street Journal.



Three top companies centered in Bangalore made the depressing outlook for IT spending much more clear, recently. All the three firms reported just a percent of 2.4 growth and less than that, in their revenue in dollar-dominated sales.



Almost all these tech firms depend on orders from U.S. companies for carrying out major part of their business, which includes offering data services, customer and tech support and consulting as well. As a result, the company’s results give an idea about the tech-spending habits of their clients in U.S.



"Everybody is being watched and monitored and gauged," says N. Chandrasekaran, chief executive of Tata Consultancy Services Ltd., one of the largest outsourcing companies in India, by sales. "They have to be extremely careful in what they are spending on."



 



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