Many Jobs to Be Lost in Indian IT Firms

The effect of recession is here to see in India. Many firms are laying off employees and are doing much less recruitment. Also those with higher salaries are being laid off for those who can be recruited for less.

This is over and above the normal attrition which is due to non performance of employees.

Employees need to be cautious in this poriod and need to re negotiate their salaries and agree for performance bonus and a slight cut in their salaries.

More over those with higher salaries may need to move out to new jobs with lesser perks.

This all a part of cost re structuring of Indian IT firms.

Indian IT firms are dependent on EU and US for their major orders and due to sluggish growth in the west the Indian firms are also affected to that extent.

Nintendos' Differentition Strategy

Nintendo created a Differentiated product and enjoys a loyal clientele. Take the figures of its products sold a total of 150 million units sold since 2006.

There is good demand for its products even in the recession and it had no need to cut price.

Its console are differentiated through touch screen easy play consoles and motion sensing controls making playing at Nintendo a altogether different experience.

Indian Tech Companies Likely to Preform Flat

The G7 economies under hit, likely to result in less and less work being outsourced to Indian IT companies.

So the top line of Indian IT companies is likely to be flat. So if you are investing in Indian stock companies you need to factor these facts. Performance of tech stocks is not likely to result in much growth compared to other stocks.

In 2008 the best stock were that of FMCG which were least affected by the lash of recession.

So are you thinking of picking your next growth stocks, is it going to be Infrastructure stocks or Telecom stocks?

What is your take?