I agree with the author. Let us think practically and not become emotional. US is the largest global consumer. Laws of economics and capitalism work here the best than anywhere else in the world. US is a developed economy. Whatever is considered as luxury or comfort [such as food, clothing, housing etc in developing countries like India/Asian countries] are a considered as necessity here. If the dollars goes below certain levels it will be difficult for other countries to export goods profitably and the software companies would consider relocating back to the US. There will be technical correction, surely.
RE:All economies will be hard hit if US slows down
by Sruno on Dec 10, 2007 08:50 PM Permalink
In my opinion I dont think the software companies would relocate to US as it is always lucrative for the US to outsource. It is going to be the Indian job market that is going to be hit hard. With the economy slowdown in US the Indian IT companies need to either up their $ quotes on projects or downsize their resource (technically have zero ppl on bench) to keep seeing the same money they have been getting on executing IT projects for US companies. I dont the former being an option for Indian IT companies who will wantong to grab about anything that comes their given the competion in the indian IT industry itself.
RE:All economies will be hard hit if US slows down
by Das on Dec 10, 2007 09:41 PM Permalink
Not only the IT, I think the Textile indus also will get good jerk. And IT, I think you have seen the situation in 2000. Obviously no job, to get a job you have to stand in a big QQQ. Talk about real estate, DLF/Unitech will vanish and the Bank will pull all Home Loan Taker Colar . I think most of our IT prof submerged in Home Loan to avoid tax. The tax dept also can relax for some time as they will get less Tax... Developer and the poliician still will be enjoying ... Jai India...
RE:All economies will be hard hit if US slows down
by anil b on Dec 10, 2007 10:21 PM Permalink
i guess new jobs will not be there but those IT guys who have home loans will be dire straits since they wont get jobs that easily .IT guys dont have any debts since your jobs are not eternal. learn that first.
RE:All economies will be hard hit if US slows down
by Janhavi D V on Dec 10, 2007 09:13 PM Permalink
How dumb a person can be in his analysis that outsourced/offshored jobs in software will relocate to US. If the US economy is hit, more software jobs will be outsourced/offshored to cheaper markets (India or any other country) to cut costs.
RE:RE:All economies will be hard hit if US slows down
by bayareago on Dec 11, 2007 04:20 AM Permalink
It is not dumb. Its the fact. Look at Rupee appreciation and dollar depreciation. Do you think its cheaper to outsource considering the overhead and rupee appreciation unlike the dot com bust era( when outsourcing flourished).
RE:All economies will be hard hit if US slows down
by Murli Iyer on Dec 10, 2007 09:20 PM Permalink
Hi, The question is not if the work gets re-located to US or stays in India. If there is no market et all for the work we do..where's the question of relocation. It would be scrapped as simple as that. The primary question here is if the market for IT products is good..if which is negative..the second question does not arrive at all
RE:All economies will be hard hit if US slows down
by Sruno on Dec 10, 2007 09:25 PM Permalink
Exactly. There aren't going to be any new IT projects for sure as the US industry will itself be trying to recoup and it may very well happen that existing projects be scrapped. so either way it is will effect the job marker here.
