Recession
Article : Impact of Recession on IT industry in India
Author : Dr. Kotkar S.N.
Abstract
A recession is a contraction phase of the business cycle. The effect of recession is on all sectors but the main effect is on IT industry. In that mainly related to lob loss and unemployment. There are also some remedies on recession which helps to become a stable in the market. This paper presents the reasons of recession, impact of recession on IT industry in India and remedies on recession.
Keywords: recession, Job loss, unemployment, IT industry. 1. Introduction:
A recession means significant decline in economic activity spread across the country lasting move than a few months, normally visible in real Gross domestic product (GDP) growth, real personal income, employment, industrial production, and whole sale-retail sales.
The main effect of recession is on IT sector and is mainly related to the job loss, unemployment and others. Recession has direct impact on profitability of IT companies. It impacts the expense power of company. Companies go to a severe level of cost cutting for its survival. Usually companies try to shut down some of its unit and lay-off employees. 2. Study of Indian IT industry:
According to NASSCOM, in India, software and services industry group generated total revenue of $64 billion in 2008. It has been growing with an annual rate of 28% since 2001. The exports market constitutes the largest segment accounting for 62-66% of the total revenue generated by the Indian IT industry. IT export will account for 35% of the total export from India. As far as job creation out of this growth is concerned the sector generated 2 million direct jobs and around 7-8 million indirect jobs.
Maximum top most multinational companies have been attracted in India. Some of the major companies are shifted to India. The market is gaining driven by overall economic growth increased adoption a technology and outsourcing.
3. Reasons of recessions: i)
Author : Dr. Kotkar S.N.
Abstract
A recession is a contraction phase of the business cycle. The effect of recession is on all sectors but the main effect is on IT industry. In that mainly related to lob loss and unemployment. There are also some remedies on recession which helps to become a stable in the market. This paper presents the reasons of recession, impact of recession on IT industry in India and remedies on recession.
Keywords: recession, Job loss, unemployment, IT industry. 1. Introduction:
A recession means significant decline in economic activity spread across the country lasting move than a few months, normally visible in real Gross domestic product (GDP) growth, real personal income, employment, industrial production, and whole sale-retail sales.
The main effect of recession is on IT sector and is mainly related to the job loss, unemployment and others. Recession has direct impact on profitability of IT companies. It impacts the expense power of company. Companies go to a severe level of cost cutting for its survival. Usually companies try to shut down some of its unit and lay-off employees. 2. Study of Indian IT industry:
According to NASSCOM, in India, software and services industry group generated total revenue of $64 billion in 2008. It has been growing with an annual rate of 28% since 2001. The exports market constitutes the largest segment accounting for 62-66% of the total revenue generated by the Indian IT industry. IT export will account for 35% of the total export from India. As far as job creation out of this growth is concerned the sector generated 2 million direct jobs and around 7-8 million indirect jobs.
Maximum top most multinational companies have been attracted in India. Some of the major companies are shifted to India. The market is gaining driven by overall economic growth increased adoption a technology and outsourcing.
3. Reasons of recessions: i)
References: 1. Sayed Khan (2009) Recession and India. 2 Abhay Deshmukh (2009) Global recession. 3. L. Zalki (2009) Recession and impact on Indian IT. 4. Sayali S.Patil, Mayur Jain (2010) Advance marketing strategies in recession, INPOR-2010. 5. Jadhav U.D (2012) The Prose and Cons of Global Recession on Indian Economy, Platinum, ISSN no 2231-0096, vol-3 No.1 6. Shelly Mahajan, Causes and effects of recession prevention.