Restructuring in US industries may benefit IT Cos here

Restructuring in Financial Services and Automotive Industries will increase outsourcing to places like India

 

The ongoing restructuring activities in industries such as financial services or automotives in the US could result in deals for the Indian IT services players in the latter part of the fiscal. "As a result of the restructuring in financial services or automotive industries, they are going to increase their outsourcing and some percentage of that is going to come to places like India," said John McCarthy, Vice-President and Principal Analyst, Forrester Research. Such deals are potentially going to get finalised next year, and the present year would still see a lot of confusion and uncertainty, he added.

 

He said the situation would gradually improve towards the end of this year and into the next year, and there is a feeling that it has started to get pretty close to the bottom. "Over the next six months we are going to get a sense of how the industry is going to change." McCarthy said there is a possibility that the financial services sector could recover before industries such as automotive or real estate do. He said some companies might initiate specific projects that help would cut costs.

 

Source: The Hindu Business Line