Times Roman Empire: Is It The Decline?

• In a first, large IT players are showing falling revenues, weak guidance. Profitability is under pressure too.
  
• Recession-hit US & UK clients are delaying projects, decisions. Sizes of contracts are gradually getting smaller.
  
• IT firms facing pricing pressure. Contract prices being revised 5-15 per cent downwards for most firms.
  
• No increments. Bigger IT firms have announced salary cuts for senior staff.
  
• Top IT services firms not going for fresh H1B visas; US firms reluctant to hire foreign workers

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• IT sector growth expected to fall from 15 per cent to around 9 per cent in the next year, flat growth in the next 2-3 quarters
  
• Billing rates will continue to be subdued for the next couple of years, hiring strictly on need basis
  
• Smaller players will find it difficult to survive; there will be increased M&A activity
  
• Analysts say no sign of recovery for over two years, IT stocks likely to underperform

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The IT sec tor isn’t used to plunging graphs. What will happen after the current dip?

• 2.1% Fall in profits of India's largest IT services firm TCS*
  
• 1.5% Fall in revenues at TCS for Q4, 2008-09, compared to Q3
  
• 3.1-6.7% Infosys' expectation of revenue fall next financial year
  
• 2,100 Number of people Infosys sacked in April 2009

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