Wednesday 21 January 2009

SIN18: The Indians are coming - or are they?

The Indians are coming - or are they?

As Satyam is being investigated for 'financial irregularities', (some have mentioned on the same scale as Enron), what will be the impact on what most were predicting to be a great year for offshore outsourcing as UK companies look for lower costs and more added value for their IT dollars.
Some have predicted that it will not have any effect but we disagree, any company looking to offshore will now be examining their potential partner with a here-to-fore unknown level of scrutiny. This will add to the time and effort in deciding on a partner and will add to many peoples belief that many offshoring contracts are not working....
It will also accelerate the slow-down in the Indian economy which was reported as far back as early November.
However this could also have an impact on UK IT, as smaller firms which were being targetted by Indian IT companies as possible acquisitions now find they have no buyers......
Interesting times we live in.....

email:jeremy.white@csi10.co.uk

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