IT firms optimistic about recovery in the second half of the fiscal
Though spending on technology continues to remain sluggish, information technology (IT) firms are becoming increasingly optimistic about recovery in the second half of the fiscal. The three behemoths of the Indian IT industry, Tata Consultancy Services (TCS), Infosys Technologies and Wipro all see a turnaround at the next corner.
Global business fundamentals, however, continue to be weak and opinions are divided on when the industry can uncork the bubbly anytime soon. In a recent meeting with JM Financial analysts, TCS officials said no shocks had been seen in the global economy lately and so, things may get better by the second half. In their report on Friday, the analysts Diviya Nagarajan and Subhashini Gurumurthy said, "TCS cited the absence of unforeseen disruptions to the global economy as a positive step towards stabilisation in the economy." The officials said TCS had managed to bag some new projects and had even resumed dialogue with customers, leading the IT giant to believe the end of September quarter would see the beginning of an upward trend.
Infosys and Wipro, the second and third largest IT firms in the country, shared their bigger rival's sentiment. Ganesh Natarajan, a member on the council of chairmen at industry body Nasscom, expects pent-up demand for IT services to be released in the fourth quarter of this fiscal and limited recovery by mid-2010.
Source: DNA
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