As the winter recedes and spring is ready to bloom in the northern hemisphere – the fears of doom and gloom recede too. If one looks at the IT Industry worldwide with lens of India-based software service providers, the sense of déjà vu is back. Fond memories of the good times come rushing back.
Now you may ask; what makes me say this? After a dismal period ranging from late 2008 to early 2010; the tide has turned. After few years, this could well be the first year where Fortune 500 companies may have a year-on-year increase in their planned IT Spend. Further, the stress that had engulfed everyone from the Wall Street to the Main Street and everyone in the middle has dwindled and the early signs of a return to growth have clearly emerged. The visible trends, sound bites cuts across most industry verticals which further reinforce the confidence that IT Industry could register healthy growth in 2011.
You could also ask me; have we gone to the good old days again? I would say – Well, that is where we want to go but we are not there yet. While the mood is buoyant, all the pieces of the jig saw puzzle have not fallen into place yet. There are pockets of concern particularly in continental Europe which are still battling sovereign debt, geo-political uncertainties in Middle East, North Africa and natural calamities in Japan. Hence, it may take a little while longer for all the regions to buzz in unison. Having sounded the cautionary tone, the mood has certainly swung in favor of committing investments; driving growth and leveraging the winds of change.
If you agree with this, you may ask – what does the return to growth mean to me? It certainly signals good times! It means the activity levels will remain high. New clients will be added. New deals will be signed. The clients will reap the benefits of IT Outsourcing and the Service Providers will deliver value. The economics will work in favor of both economies and the employees at both sides will be happy to see more greenbacks (or whatever the color of your currency).
So, join me in ushering in the Good Times again!
The author of the piece is: Sreenivas V. He is the Chief Strategy Officer at Hexaware Technologies Limited. The contents on the blog above are his personal views.