India Should Not Worry About US Recession
I get this question a LOT from people from my friends in India, “How will the US recession affect here in India when my business is centered around recruiting?” I try to be optimistic, but to say that I would be concerned would be an understatement. However, I can offer some cautious optimism based on the article below from Silicon India. Check it out…
Silicon India says:
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.
Source: Silicon India News Bureau
And that’s been about the happiest report I’ve seen recently. Here is a list of other articles trumpeting more doom and gloom.
- IT industry faces recession on US woes
- US recession to hit Indian jobs?
- Asian markets plunge on worries that U.S. is sliding into recession
- US slowdown may affect India’s growth rate: UNDP
- Asian economies hit by US financial crisis and slowdown
- INDIA REMAINS INCREDIBLE-The Congress has decided to party at the taxpayers’ expense
So I suppose the next logical question is how long will it last? Some people (a lot smarter than me) suggest the US recession will rebound by mid 2009. For me, I just don’t know. If I were an IT Staffing Firm in India relying on US Dollars to keep me viable and you were to ask me what I would do… Hmm… Probably, one (or all) of the following:
- Set up a 24-hour Tech Support Service and reach out to other countries with my services.
- Take advantage of sites like Elance, so I can find clients among the American consumers.
- Use the IT talent I have to create products and transform myself from a staffing company into a software company. Make my consultants into share holders and vote on the best ideas on what direction the company should take.
- I become a SAAS (Software As A Service) company and charge a monthly subscription fee to keep the revenue flowing.
- Maybe I would consider an avenue in Quality Assurance/ Security where I would look at products and websites and tell companies where there products are defective and offer my company as a solution to fixing the issues.
- Find countries where IT Consultants work cheaper than they do in India (its possible) and outsource work to them, but acting as a middle man. (Oh, the irony.)
- Maybe even pursue the “idea” market. What’s that? Everyone has an idea on the perfect product or website, perhaps pitching my company as a site where we make technical dreams a reality for a reduced cost.
I think that if I were an IT firm stuck in the mode of thinking that I can only make money with US firms outsourcing their projects to me, then I would have many sleepless nights right now. However, if I see this situation as an opportunity to do something different, then I would be content in knowing that this would the time to be daring. After all, what do you have to lose at this point? And if that is the case, I would not need to worry about the US recession.
These are just a few suggestions. I would love to hear what others think. Leave me a comment?
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Hi,
Very nice thats the spirit and even I liked your idea too, always go ahead with lots of +ve energy in yourself noboby can beat u, as you don’t have anything to loose.