- The global community is aware of the prowess, technical know-how, skilled manpower in abundance, and thousands of talented information-technology professionals who are not only swarming the Indian industry but also across the globe in droves. Mind you, there is no dearth of lakhs of IT Engineers emerging from hundreds of professional institutions who are absorbed by some of the biggest Tech houses in the world. Little wonder, the Indian IT professionals are not only considered as a niche talent in itself but also a diligently resilient lot who wish to explore the hitherto uncharted territories with great aplomb. Looking around would reveal how the Indian professionals are driving some of the most cutting-edge IT solutions/applications available.
PC: TechSwitch
- We are aware that the IT field is extremely dynamic, with new technologies emerging perpetually on the back of humongous manpower dedicated to the purpose. Yes, the emergence of the reflective artificial intelligence (AI) has completely altered the scenario simply because of the innumerable opportunities offered by the fast-developing technology taking root everywhere.While the global focus is on the excitement offered by AI, the IT story need not be construed as losing focus or attention. Make no mistake, IT story isn’t in tatters; however, stocks are a different matter. The recent rout of Indian tech stocks is a signal for sober reflection, not panic. It was waiting to happen after outsourcing, when major Accenture announced weak revenue growth.
PC: Consulting.us
- More importantly, Accenture announced a dip in major orders. The company said clients aren’t increasing their overall tech spending for AI; rather, they are reallocating budgets from other heads. So, the size of the pie isn’t growing yet. Things might have been better had the Iran war not happened at the most inopportune time. But for now, orders from West Asia have reduced. There are new worries about the next few months also, as the US Fed is expected to hike rates in September, which will curb overseas spending by US firms. Basically, investors must temper their expectations as far as tech stocks are concerned. That said, IT firms have enough orders for now and secure revenues. So, they are well-placed to prepare for the coming challenges.
PC: The Statesman
- Of course, they are, as hiring has slowed, headcounts are down, and AI investments are up. Indian tech majors know their labour-intensive model won’t be viable soon. But that doesn’t mean they’ll be out of business. They may not be at the cutting edge of AI, but huge manpower will be needed to implement AI projects for clients, train their staff, etc. So, the Indian IT story isn’t ending, even if the market one morning drops IT stock like a hot potato. Overall, it’s not been a good year for India’s tech stocks, which have underperformed the rest of the market. And when a $315bn industry, by revenue, sneezes, the overall market is bound to catch a cold. Let Wet Asia settle down, let clarity emerge on US rates, and corporate spending appetite. Let’s not panic.
