Europe no different
America's transatlantic cousin, too, has a few problems of its own. Experts are of the opinion that markets in the UK and Spain could be the next to collapse as real estate prices have been on the decline.
"Companies like UBS and Deutsche Bank have already reduced their IT budgets," says an analyst with a domestic broking house. The situation is not as bad as the US, but that is hardly any consolation. "Europe is clearly showing signs of slowdown, especially large economies such as the UK and Germany. They could very easily get into a recessionary phase," believes Gaurav Dua, head of research, Sharekhan.
Among large American and European companies surveyed by IT consulting firm Forrester Research in September, a full 43 per cent have cut their overall spending on technology products and services in 2008. And, this was before the collapse of Lehman Brothers.
Image: A picture of the Wall St. bull is displayed in the window of a building in the financial district in New York City. | Photograph: Spencer Platt/Getty Images
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