IT PLIGHT!

Challenges faced by IT industry

· Unstable currency

· Slowdown in US economy

· Fallout of subprime and credits crisis on banking, retail services

· Rising oil prices

· Wage inflation

· Inflationary pressures

· Fall in operating margins

· Shortage of employable talent

· Cap on H1-B visas

· Protectionism threats ahead of the US presidential election

How IT companies are tackling the new challenges

· Reduce dependence on US economy

· Increases exposure to European region

· Focus on domestic market

· Focus on region like Australia, Canada, etc.

· Look at newer verticals such as pharma , healthcare, energy and utilities

· Expand services lines, also newer services within core focus areas

· New offerings such as SaaS

· Focus on honing consulting capabilities

· Look to have global presence by setting up offshore centers

· Move away from linear growth path

· Look at increasing revenue per worker