+ India thrives on 2 advantages i.e. cost cutting and talent availability
+ Concern: Immediate Indian worry is rupee rose 12% last year – 2007 denting profit
+ Concern: is slowdown of US economy which accounts for 60% of the business.
+ Concern: Global IT spend as part of the overall spend will decrease this will put pressure on outsourcers to provide more for less.
+ Concern: is availability of skilled manpower will be bottleneck. Each year India produces 3M new graduate and diploma holder to the talent pool and nearly 3rd are in the engineering and science. However less than quarter of them are employable by the industry standards.
+ Concern: IT is loosing shine and people are being attracted by BFSI, retail and telecom sector. This has led to higher wages and attrition rate.
+ Concern: is poverty of infrastructure. Traffic jams; non-renewal of tax exemption
+ TCS sent 500 fresher for unsatisfactory performance and cut a small portion of variable pay to make up for shortfall in an internal target.
+ Earlier lower Rupee acted as partial buffer against wages and rentals.
+ The total revenue of the IT-ITES industry is expected to be USD64B for the current financial year ending March 2008 up from USD 47.8B for the 2007
+ The contribution of IT-ITES industry to the GDP grew to 5.4% from 4.7% of previous year.
+ The sector is expected to exceed overall software and services target of USD 70B by 2010
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