While the second quarter was aided by a depreciating Rupee and signs of outsourcing demand pickup, the rest of the fiscal year may not be strong due to impending passage of the Immigration Bill, increased regulatory oversight regarding visas and continuing uncertainty surrounding US debt, which may force corporates to pause spending on IT.
Agrees Sanchit Vir Gogia, Chief Analyst, Greyhound Research. In this level playing field everyone is competing for the same set of accounts, it is crucial for Indian firms to move into more strategic consulting offerings since that is the area where larger firms like IBM, Accenture dominate.
While growth seemed to be picking up, the current investigation by the US visa authorities into fraudulent visa practices by IT firms following the Infosys controversy can surely be a dampener, feels Gogia.
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