The US rating downgrade could boost the South Asian country’s flagship information technology sector by pushing overseas clients to seek more savings, according to India’s main outsourcing trade body on Monday. Also the National Association of Software and Service Companies (Nasscom) added in a statement it was “also counseling the Indian IT sector to maintain a cautious outlook going forward.” Around two million people employs the $60-billion sector,earns 70 percent of its revenues from the United States and accounts for five percent of India’s gross domestic product. Lat Friday, the Standard & Poor’s downgrade of the US credit, has sparked fears about a return to the global financial crisis of 2008-2009 when India’s software industry was hit by lower technology spending by customers.The Nasscom statement came as shares of Indian outsourcing firms slumped on the Bombay Stock Exchange, weakening more sharply than the overall falling market. Leading outsourcer TCS shed around 4.49 percent to 1,009.25 rupees while India’s second-largest outsourcer, Infosys, dropped 4.73 percent to 2,468 rupees. It was optimistic that the industry could ride out the renewed global economic turmoil, Nasscom said.. The United States “will continue to be one of the largest markets for us,” the group said. In fact, Nasscom said it believed the US economic woes could spur clients to increase the work they farm out to cheaper Indian companies. He also added that “In the case of an economic slump, we see the Indian IT industry strengthening its partnership with the US customers to build-in greater business efficiencies,” Then While the industry is closely intertwined with the global economy, it also has “a burgeoning domestic market which is equipped to sustain growth,” Nasscom added. US and other foreign firms, drawn by India’s English-speaking workforce and lower costs than in the West, have farmed out a wide range of jobs from answering bank client calls to processing insurance claims and equity analysis. The company estimated to save up to 80 percent in costs in outsourcing work to India. It is recently reported a jump in business volumes as they emerge from the 2008-2009 credit crisis in the major Indian information technology companies. Now that Information Technology goes highly in the world countries should boost. Though not all coutry is success we should not lose hope until outsourcing is there there’s always a way.
