There is no respite for the Indian IT companies fighting battles against the raging rupee and the fears of US slowdown. The last of its defences of increasing prices to hold up margins is now showing cracks as well. The big worry that is getting bigger is IT spending by global MNCs could be cut next year hitting the fortunes of the Indian IT brigade.
The bad thing is the possibility of price increase that has been the defence shield for the IT pack so far with most of them projecting a 3- 5 per cent increase in existing and new contracts may not hold either, according to brokerage house CLSA.No price hike is coming through in Banking and Financial Services Industry (BFSI) and annual 2.7 per cent price increase already seem to be factored in the margin projections of the companies.The IT companies are now coming to terms with the fact that the signs of a pricing trap is getting pronounced.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment