Gartner, the giant IT research and advisory company recently announced that the cost of IT services in outsourcing sector are predicted to fall further by 5-20 per cent within 2009-2010. The reason for this gloomy figure is the current shattered economy which is passing through a wavering stage. Additional causes responsible for this anticipatory announcement are the meagre IT budget and the instability in the contemporary financial market.
It also added that this downturn in price would occur due to the growing competition among the old and new IT players who are battling for generating the set target of revenues by offering cost-effective services. In the whole scenario of the IT economy, this rate race would harshly affect its GDP as well. Outsourcing is a must for the global IT industry and the present market condition is even lashing most of the clients to renegotiate various terms and conditions set in contract letters with their vendors.
The Indian IT sector is also falling prey to the global recession as most of the outsourcing companies are being bound to reduce their outsourcing rates. The recent happenings like the Satyam scandal, bloodshed in Mumbai terrorist attack, the sea-saw ups and downs in rupee exchange rate etc. are standing as the proposed obstacles in front of the IT outsourcing players for bidding their favourable market prices.
It also added that this downturn in price would occur due to the growing competition among the old and new IT players who are battling for generating the set target of revenues by offering cost-effective services. In the whole scenario of the IT economy, this rate race would harshly affect its GDP as well. Outsourcing is a must for the global IT industry and the present market condition is even lashing most of the clients to renegotiate various terms and conditions set in contract letters with their vendors.
The Indian IT sector is also falling prey to the global recession as most of the outsourcing companies are being bound to reduce their outsourcing rates. The recent happenings like the Satyam scandal, bloodshed in Mumbai terrorist attack, the sea-saw ups and downs in rupee exchange rate etc. are standing as the proposed obstacles in front of the IT outsourcing players for bidding their favourable market prices.
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