US recession hits Indian tech firms… and economy… hard
The recession in the US is hurting Indian outsourcing companies quite significantly. In a conversation I recently had with a Pakistani tech CEO who maintains numerous relationships with Indian outsourcing companies, I learned that the closure of large financial services institutions has caused the loss of thousands of jobs already in India.
Today, I came across this Reuters piece that more broadly analyses the impact the US recession is having on India. Job losses are not the only problem. Freefalling real estate values in cities like Bangalore, loss of revenue for all major outsourcing firms, a plummeting SENSEX stock exchange (down 50% since Jan ’08) and even a paucity of shoppers in malls are significant issues linked to the recession.
Some interesting quotes and a link to the article after the break.
From the article titled, “Wall Street woes has India outsourcing on edge“:
“It’s not just Wall Street. It’s Dalal Street,” said Mansi Aneja, 30, referring to the Bombay Stock Exchange, which has lost about half its value this year. She said she’s putting off buying a new car.
[..]
Outside the cool air conditioning and twinkling displays of the Forum sits Shankar, 29, who has been selling wash rags for 10 rupees (US$0.20) a piece at traffic lights for 12 years.
He says he’s profitted from Bangalore’s boom, paying for his sister’s dowry and a small house for his parents. But this year he’s fallen on family trouble, and got robbed by some men he’d hired to sell rags for him, he said.
“Before it was very good. Now it’s worse than death,” he said.
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