#Coronavirus: Infosys Ex-CFO Predicts Zero Or Negative Growth For Indian IT Firms; Will It Lead To Job Cuts?
The economy of the country is bound to take a tumble, what with the country being under lockdown, and the ex-CFO of Infosys has seconded this.
Its been a couple of weeks since the government has announced a lockdown due to the coronavirus outbreak.
We also previously reported that the IT industry in India may see a decline in overall revenue by up to 3-4% and the reason is the coronavirus pandemic.
Find out what the Infosys veteran has to say right here!
Infosys Ex-CFO Says IT Industry Will Report Flat And Negative Growth
Coronavirus pandemic has highly affected the IT industry highly, which was also revealed by a report made by market analysis and research firm IDC, which revealed that there will be a huge decline in overall revenue.
Ex-Chief Financial Officer of IT major, Infosys Ltd, V Balakrishnan said, “Look at the economic activity (globally). Worse than what you have seen in 2008 (global financial crisis). So, clients (of Indian IT companies) are not going to increase spending (on IT) or even maintain the current spending.”
He said that there has been a major impact on all the major industries that will include retail and financial services, due to which, there will be a decline in spending which will also result in pressure on the pricing structure.
No Spending Will Cause The Economy To Fare Poorly
He also noted a huge surge in the unemployment rate in the US. He said, “Economies are doing badly. Spending is not going to happen. I think this year is going to be tough for the IT industry.”
He said that the growth is good in the first two quarters because that is a time when everything good happens, which means that there will be a flat or a negative growth this year.
Indian IT companies have to work closely with their clients along with figuring out how much they can extract. Also, at the same time, they have to control the costs and manage the current year. Costs should be planned in a way that there are margins so as to reduce the impact.
No one knows how long the lockdown will continue and getting the economy back on track is like kickstarting a frozen engine.