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Positive bias towards IT spend, more deals likely
By siliconindia
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Friday, 12 September 2008, 00:42 IST
Bangalore: There is good sign for Indian IT service companies, who have been facing setbacks due to U.S. economy slowdown, as analysts foreseen a change in customer sentiment towards IT spending. Customers had held back their IT spends as they were yet to assess the impact of the slowdown and now there is a change in sentiment and most of them are getting ready to go ahead with deals.
Analysts believe that this change is largely because the clients have a clearer idea of how much they can spend. The deals are expected to be signed in the fourth-quarter of fiscal 2009.
When speaking to Business Line, Sudin Apte, Senior Analyst and Country Head, India, Forrester Research, said "The months of November and December is the deal-making period, and the orders would happen in the fourth-quarter. The mood is positive because there is clarity now. The clients know how much money they have and how much they want to spend."
Everest Group also sees early signs of positive bias. The firm added "The sentiment is changing, and it is better than the first-half of calendar year 2008." Nikhil Rajpal, Principal Analyst, Everest Group and Jimit Arora, Research Director, Everest Research Institute, said "Compared with the first six months of 2008 when deals were the last thing on the companies' mind, they see lot of energy now."
Analysts also mentioned "The sentiment was positive, but one would have to wait to see how things turn out. It takes a little time to move from sentiment to reality."
