Folks
Its always fun the week of the first results announcements for a quarter when no analyst knows quite how to call it - will TCS and/or Infosys spring a positive surprise on the 12th for the IT sector ?
JP Morgan talks about both secular headwinds and cyclical forces combining to exert pressure on the industry but also states that is is difficult to guage how much of the current slowdown is cyclical and how much structural ! While discretionary spending is likely to be low and large financial institutions could be approaching saturation in their Application Development and Maintenance spend, they believe a wave of spending on regulatory compliance and risk management could be a powerful offsetting driver in the BFS space.
The lesson for all of us in the industry is to be watchful but optimistic. While head winds abound, there are enough opportunities as well !
Ganesh
Its always fun the week of the first results announcements for a quarter when no analyst knows quite how to call it - will TCS and/or Infosys spring a positive surprise on the 12th for the IT sector ?
JP Morgan talks about both secular headwinds and cyclical forces combining to exert pressure on the industry but also states that is is difficult to guage how much of the current slowdown is cyclical and how much structural ! While discretionary spending is likely to be low and large financial institutions could be approaching saturation in their Application Development and Maintenance spend, they believe a wave of spending on regulatory compliance and risk management could be a powerful offsetting driver in the BFS space.
The lesson for all of us in the industry is to be watchful but optimistic. While head winds abound, there are enough opportunities as well !
Ganesh
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