IT firms eye newer markets

• September 6, 2011
• Economic downturn in the US and the unpredictability of its markets is compelling IT companies to venture into hitherto unexplored markets of Africa, Singapore, Sri Lanka and West Asia. ‘De-risking’ is the new mantra for diversifying business to different locations for reducing the risk. “The flip-flop situation in the US will have more of an indirect effect on the industry here. It is likely that the effect will not be severe on Indian IT companies. But since the US industry will have to cut down their expenses in the near future, there will be pressure for outsourcing,” said the FAPCCI secretary, Mr Rajeshwar Rao.
  “As the US accounts for 60 per cent of the IT business, the situation has triggered a new wave of caution and change in target destinations among Indian companies. The shift in focus, apart from being a survival action-plan by the IT companies back home, was also met with a growing need for developing IT infrastructure in developing nations,” said a member of the IT and ITES association.