'Indian IT sector to sail through U.S. turbulence'

'Indian IT sector to sail through U.S. turbulence'

By SiliconIndia   |   Saturday, 22 March 2008, 07:06 Hrs
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Bangalore: Though India's IT industry will feel the heat of the U.S. economy in recession, the outlook to the current situation should be one of cautious optimism, according to offshore advisory firm Tholons.

"Unlike the last U.S. recession, the industry today is robust enough to sail through expected turbulence," the advisory firm said in its recent paper on the Indian IT industry, which generates over 50 percent of revenues from U.S.

The firm said that the industry players should mix optimism with caution and put differentiated strategies in place, based on evolving market dynamics, to ride through the turbulence. The current industry comprises of players, which are multibillion dollar organizations with presence in multiple geographies supported by robust business systems which has the capability to undertake strains in the short and medium term.

Meanwhile, the industry, reeling under severe pressure of an appreciating rupee is expected to use the same strategies in negating any impact of the recession. "We will definitely witness a 'tightening of the belt' to bring in further operational economics." The turbulence in the U.S. economy is expected to make it a difficult market for IT companies.

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