Saturday, Feburary,16,  2008 5:30 Am



I was taking classes for one of the leading mid size soft ware company when some one mentioned on the future of the information technology. I enquired on the details out of curiosity. The report was prepared by TCS stating that next 5 years information technology growth will be very good and there will not be any problems. This report was all presented by many information technology companies. I use to tell people always say it is godís grace when situation is positive.

May be the report forget to mention it was gods grace.


Immediately there was sub prime followed by rupee appreciation, stock market bashing and TCS asked employees to leave plus the cut in salary.


The main question here is the future of the Indian information technology sectors. IF one see the dasa it was the beginning of the Venus dasa the information technology boom started-10/ 9 /1989. I still remember as a young man walking in to office of current satyam computers which was doing work for dun and brad street. All my friends slowly migrated to USA. Some of them from middle class back ground could buy themselves car and house. Information technology became fashionable and working in the soft ware company could ensure good marriage etc.


If one see the growth, it started with 200% then it became 100% and finally to 28% growth. There has been gradually decline in the growth, margins and pressures of rupee appreciation. One of the most robust growth Indian IT companies has performed by 5% below the indices growth.


Now the Venus dasa is slowly coming to an end and in 10/ 9 /2009 the dasa of sun begin. In some way we can say the end of information technology story. The so called media still thumps on the Indian information technology story. The stock market pundits still write why the information technology stocks are still a great buy .


Following is the long range and short range predictions for information technology sector


  • The rupee will continue to increase against dollars. This will put a lot of pressure in information technology margins.

  • There will be less recruitment speed in the IT companies.

  • There will be also the problems till June 2008 for short run.

  • In the medium run the sector is poised for some growth but not on the verticals they are operating right now.

  • Finally as the sun dasa begins it will bring down the rate, pace and volume of growth in this sector.


Success story will be there, but not the way these companies boomed and groomed many people. This will also be a me too sector. in next 5 years one can see gradual and sure decline of these company


Any way the great parashara stand the test of the time. What happens at the end of the dasa will tell what will happen at the next dasa. This is dasa chidra time for Indian with new icons coming and old icons dropping.


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