The global credit crunch is about to clamp on a big bite on India’s IT and Business outsourcing, the signs have become obvious.

Not only that, the country’s volatile political climate threatens its image of prosperity and stability in the eyes of the world.

The economic slowdown has finally affected India’s once prominent and progressive IT industry as shown in the troubling symptoms like Wipro, the country’s third-largest IT and software exporter, is now seeing a few customers cancel contracts and deterioate deals through delays and downsizing.

Given the downturn, customers are hurting from constrained spending. With their budgets have been reduced to cope, how can these companies pursue profit and progress? Wipro faces the challenge of meeting their customer needs without lowering service prices.

However industry insiders are still hopeful, albeit a cautious sort of hopefulness. They project that there are still opportunities in terms of acquisitions, as valuations tend to fall in these situations, it would be easier to acquire select properties and personnel especially outside India.

Like their customers, Wipro and fellow large outsourcers would be tightening their belts as well. The budgets for marketing and facilities construction will be the first to be cut down and soon perhaps a slowdown in hiring and travelling.

Though the rising tension between India and its neighbor, Pakistan after the attacks in Mumbai has been commented as minimal to India’s business, it is in no means helping but adding to the concerns that India has to deal with.

The year 2008 is already ending and despite previous predictions that their industry can survive and surpass the present economic crisis, it appears that India’s IT and Business outsourcers have a plateful of “crow” to eat for Christmas and New Year of 2009.

Outsourcing Solutions, Inc. – your outsourcing partner!


  1. Lee, Matthew and Yost, Pete. “Clinton’s India ties may complicate Obama policy.” 1 December 2008. Associated News Press. Accessed 1 December 2008. Link here
  2. “Facing credit crunch: Wipro seeing a few cancellations, more delays.” 2 December 2008. Economic Times of India. Accessed 2 December 2008. Link here


You must be logged in to post a comment.

Recommended Providers

Recommended Articles

Ask the Expert

Please click here or send an email to with your questions about outsourcing.