Industry News 23 Feb 2008
Rupee fall a big plus for IT sector
A slowdown in the US and a falling dollar had spooked India's big IT companies but now the rupee has weakened and buyers are coming back to IT.In the fourth quarter the rupee has weakened by 2 per cent and the weaker rupee could boost earnings for IT companies.
Analysts see Q4 operating profit margin to go up by 50 - 100 bps due to the weak rupee. Technology majors say IT budgets will go up modestly in 2008 and wage inflation may also moderate from 2007 levels.Cognizant's 38 per cent revenue guidance for 2008 has come as a big booster.
Technology majors say nearly 90 per cent of their top 50 clients have finalized 2008 budgets shrugging off fears of possible adverse impact from US slowdown.Infosys says customers are not asking for any price cuts and Wipro expects to get further clarity on demand by early March.However, TCS sees slowdown in IT budgets from BFS and retail clients though order book stands robust.The companies dealing in technology sector are seeing good demand from outside the US especially India, Middle East and Latin America. Even with the US banking sector suffering from the subprime crisis, the tech companies expect more orders to come in from clients in banking and financial services.
More IT firms keen to be in Kerala's Technopark
With 140 IT and ITES companies working at the Technopark campus, more companies are looking forward to set up shop at the park here. Several IT firms have expressed interest to set up shop, M. Vasudevan, a top official attached to the Technopark told.
Technopark, situated on the outskirts of the capital, currently has 17,000 employees located in 3.20 million sq ft of office space. Work is progressing for construction of another 1.20 million sq ft space. After completion in two years time, the new section will employ close to 15,000 professionals, which will finally take the number of professionals working at Technopark to 32,000.
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