Update: This was a PuneTech April Fools’ Day prank. See this post for the full story.
There is plenty of anecdotal evidence that we are in the midst of a major recession, and it is having a significant effect on the Indian software industry. Now there are hard numbers giving an exact idea of how much the recession is expected to affect the software industry in different cities in India, and the results are interesting, to say the least.
This video is a sensationalized/misquoted version of this news item. Please read this whole article before viewing the video. Click here if the video is not visible.
INHR Associates, a Noida-based human resources consulting company, conducted a survey of over 400 CEOs, CFOs, heads of business units and other executives with P&L responsibilities from 250 software companies across 10 cities in India to get their estimates of the impact of the recession on their business in 2009.
Here’s an excerpt from the report:
Image by ngkabra via Flickr
The key contribution of this report is in giving a quantitative estimate of the impact of the recession on the Indian software industry in 2009. Overall, the respondents expect a 19% YoY drop in revenues in FY2009 with the first quarter being the worst. 1Q2009 is expected to show a whopping 35% drop and the situation will gradually improve each quarter with 4Q2009 actually ending on a positive note with an expected growth of 2% compared to the same period in FY2008. As can be seen from Figure 2.2, the expected revenue drop ranges from 8% in the case of Delhi/NCR and 9% for Bangalore, all the way up to 42% for Hyderabad, which is clearly the worst affected. 15 other cities, not shown in the graph, all are reporting declines in the same range. Surprisingly, Pune and Chennai are expecting a growth in their topline revenues inspite of the recession – with Pune clocking in at a huge 17% YoY growth.
An extended abstract of the report can be downloaded from here, and the full report, which also contains sector-wise breakups and other details, is only available as a paid download for Rs. 7500 (or USD 300 for purchases outside India).
Of course, the big news, as far as PuneTech is concerned is that Pune is far outperforming all its peers in handling the recession. Unfortunately, it is unclear what the reasons for this are, because we could not download the full (paid) report. However, that has not stopped a certain TV channel (that will remain unnamed) from jumping to conclusions and blowing the news out of proportion. Here’s a relevant clip from their news report. (For the record, my comments have been taken completely out of context, and I wasn’t even being serious when I said all those things, and I most definitely do NOT think that punetech.com is the reason why Pune is doing better than Bangalore.) In any case, the clip has some interesting reactions of the average techie (fast-forward to the 2:40 mark), and I’m sure managers are going to have a tough time in meetings tomorrow.
In any case, the full video is here.
Anyway, what do you think are the reasons for this positive impact of the recession? Please let us know in the comments section below.
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