With all the talk of whether the global financial crisis is good for the BPO sector or not, the government of India has accepted that the IT and BPO sector cannot go unscathed.
Jyotiraditya Scindia, minister of state for communications and information technology, told the Rajya Sabha in the written statement that as the meltdown was a global phenomenon, there were only a limited amount of measures that individual companies could take. These include an increased focus on productivity, efficiency, and resource utilization, wage moderation, optimal lateral hiring, etc., and increasing levels of efficiency for utilization of assets like real estate and IT infrastructure.
Scindia quoted NASSCOM’s suggestion that most companies are working to increase their levels of utilization of resources and looking to redeploy personnel within the organization where possible.As per the NASSCOM, the total software and services exports in 2007-08 was $40.3 billion and the sector targeted to achieve an export revenue of $60 billion this year. With the US facing a major financial slump many major players have shifted their focus to other markets including Europe to try and cut their dependence on the US.
However, Nobel laureate Dr Amartya Sen has indicated that there could be a silver lining. In a interview to AIR, Dr Sen said the recession wouldn’t prove to be a long-term threat to a booming outsourcing sector as it is likely to last only two or three years. Sen added that Indian services are important for the US, although poor growth in the US would clearly slacken the growth rate in India too.
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