| Date: |
13-04-2010 |
| Subject: |
US revival to give a boost to Indian IT companies |
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The latest reports from global technology research firms hint at a strong rebound in IT spends in the US and other major economies in 2010. The prognosis is based on the recovery in the December 2009 quarter demand for IT products and services, and anticipation of revival in the US economy and user industries.
This supports the market’s expectation of recovery in business fundamentals for the Indian IT exporters. Top IT companies are expected to report 4-6% volume growth for the March 2010 quarter. Moreover, analysts feel that Infosys, the country’s second largest IT player, will project a lower double-digit revenue growth for FY11, much stronger than the estimated 5% increase for FY10.
The Street’s expectation is validated by the views of global research agencies, Gartner and Forrester Research. Gartner, for instance, forecasts a 5.3% increase in global IT spends in 2010 compared with the 4.5% drop in 2009.
Source : The Economic Times
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