It's Not Infy Alone: TCS, Cognizant Too Joining the Downturn

Technology to Go Ahead, Leaving behind the Big Players

In the much anticipated macroeconomic environment, technology is expected to make remarkable progress. Technology areas such as nanotechnology, bio-tech and even information technology offer really exciting possibilities for the humanity. But the future of the above mentioned Indian IT companies are still ambiguous as it is tied closely to the state of the U.S. economy than to the state of technology. And this dependency is unavoidable.

Reasons behind the Downfall

The two factors for the decay of these companies are: one, the global macroeconomic environment and the second, the understanding of this environment by these companies. They are failing to foresee the coming depression, as they did before the credit crisis in 2008. Thus all they can do is to simply respond to such crisis when it comes rather than take the needy actions by predicting the whole thing before hand. These companies with mediocre understanding could not reach up to a conclusion.

Thus, the failure in making quick and apt decisions in the previous slowdown can be forgiven. But in 2012 it is not the case.