A slowdown in the global economy and sub-prime crisis in the banking, financial and insurance services sector, its major revenue earners, force the domestic IT industry to take a relook at its hiring strategy.
Indian IT majors like Tata Consultancy Services, Wipro and Satyam Computer Services -- which have running multi-million dollar deals with General Motors that has filed for bankruptcy -- are likely to face a short-term impact since any loss of business in these slowing economic conditions is a setback.
Chrysler and General Motors each annually outsource $200-300 million (around Rs 10-15 billion) worth of projects to different vendors, which may be hit by 20-25 per cent, says Avinash Vashistha, chairman and CEO, Tholons, a research and advisory firm. While Chrysler has filed for bankruptcy, there is talk that GM may follow suit.
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