Will IT slump get worse???

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mittu

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Being the IT fresher, am one of the affected ones. MNCs are not hiring freshers anymore and trend is believed to be stay here for a while.
So, can anyone tell for how much time this slump will stay and will it get any better/worse after US elections???
 
Its likely to continue little longer...

mittu said:
Being the IT fresher, am one of the affected ones. MNCs are not hiring freshers anymore and trend is believed to be stay here for a while.
Click to expand...
mittu said:
So, can anyone tell for how much time this slump will stay and will it get any better/worse after US elections???
Click to expand...



This IT slump is likely to stay as long as US economy gets on the track....
US economy felt the strain of the housing bust and lost momentum in recent time
US economy is primarily a credit-driven economy sustaining on borrowed capital. High consumption and low savings characterise the economy. This predominant behaviour led to credit being extended to borrowers who did not have the capacity of repaying, resulting into high default rates. This translated into losses for the financial system, leading to the current scenario of an economic slowdown. also known as Sub Prime Crisis
Sub prime basically a loan which is available for those who fails to get prime loan because of their poor credit history and credential…so they opt for sub prime loan for which they have to pay higher interest rate compared to prime rate.


But being a service industry, we always have to depend on the other industries and developed countries for revenue as we ourselves are not selling a product, rather serving others.So, we always need more people than actually required, to get projects. Being a open industry and easy availability, all are moving to IT...
 
sudeepdular said:
This IT slump is likely to stay as long as US economy gets on the track....
US economy felt the strain of the housing bust and lost momentum in recent time
US economy is primarily a credit-driven economy sustaining on borrowed capital. High consumption and low savings characterise the economy. This predominant behaviour led to credit being extended to borrowers who did not have the capacity of repaying, resulting into high default rates. This translated into losses for the financial system, leading to the current scenario of an economic slowdown. also known as Sub Prime Crisis
Sub prime basically a loan which is available for those who fails to get prime loan because of their poor credit history and credential…so they opt for sub prime loan for which they have to pay higher interest rate compared to prime rate.


But being a service industry, we always have to depend on the other industries and developed countries for revenue as we ourselves are not selling a product, rather serving others.So, we always need more people than actually required, to get projects. Being a open industry and easy availability, all are moving to IT...
Click to expand...

Your knowledge about US economy is quite good.
 
sudeepdular said:
This IT slump is likely to stay as long as US economy gets on the track....
US economy felt the strain of the housing bust and lost momentum in recent time
US economy is primarily a credit-driven economy sustaining on borrowed capital. High consumption and low savings characterise the economy. This predominant behaviour led to credit being extended to borrowers who did not have the capacity of repaying, resulting into high default rates. This translated into losses for the financial system, leading to the current scenario of an economic slowdown. also known as Sub Prime Crisis
Sub prime basically a loan which is available for those who fails to get prime loan because of their poor credit history and credential…so they opt for sub prime loan for which they have to pay higher interest rate compared to prime rate.


But being a service industry, we always have to depend on the other industries and developed countries for revenue as we ourselves are not selling a product, rather serving others.So, we always need more people than actually required, to get projects. Being a open industry and easy availability, all are moving to IT...
Click to expand...

I second the thoughts! :)

US is under recession , not official but there ain't any second opinion to that as well. (drastic measures as Rescue of Bear Stearns , semi nationolisation of Fannie , Freddie only add to the the substance).Decoupling theory ( Decoupling of Growth of Rest of World from US ) failed , so Eurozone is following US , UK is worse than Eurozone.

Emerging econmies will slow!

We are not over yet, Watch out for Lehman buyout this weekend or for sure in coming week.

Housing bust as explained by Sudeep is there to saty to haunt.

Time frame , Umm..... end of 2009 , things will start improving. hopefully! :)
 
anilsinghd said:
We are not over yet, Watch out for Lehman buyout this weekend or for sure in coming week.
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That was obvious , was not it !!!

Lehman files for Bankruptcy , Merill Lynch bought by Bank Of America ,

blood everywhere on the Wall Street.

Turbulent times , not good news !
 
I was placed in Accenture in my 3rd year[2007], now am out of college, waiting for Joining, According to HR Dept. of company they will board us in month of November(ameeeeeen!!). Almost all companies are delaying joining s of campus hirings, Some are even sending apology letters.
Currently there are no fresher openings in IT and chances are looking bleak as Anil pointed out.
If anybody have any advice, most welcome. currently i am working as tech. support executive in Wipro.
 
ygulia said:
Yes, it is too bad. I think there may be more surprises after the US President's Election.
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We are nearing the height of the problem , probably failure of buy out of AIG will be the last large casualty. There on , it will be a downward journey in terms of less dramatic events.

Wait for American Elections to come near. Another fiscal stimulus package is inevitable.
some one doe shave to buy the crap and in these times , it cannot be a corporate or a private investor , so govt does have to load it own balance sheet , they cannot hide their face.

Cometh mid of 2009 and things might start looking better!


mittu said:
I was placed in Accenture in my 3rd year[2007], now am out of college, waiting for Joining, According to HR Dept. of company they will board us in month of November(ameeeeeen!!). Almost all companies are delaying joining s of campus hirings, Some are even sending apology letters.
Currently there are no fresher openings in IT and chances are looking bleak as Anil pointed out.
If anybody have any advice, most welcome. currently i am working as tech. support executive in Wipro.
Click to expand...

Hang on ! That is the only advise i can give. Keep up the hard work , also dont be idle because a boom( approx around end 2009 or early 2010 or even later ) does not mean an automatic job , sharpen your tecnical , personal , communication skills ... Experience does count so keep working!!!
 
anilsinghd said:
Hang on ! That is the only advise i can give. Keep up the hard work , also dont be idle because a boom( approx around end 2009 or early 2010 or even later ) does not mean an automatic job , sharpen your tecnical , personal , communication skills ... Experience does count so keep working!!!
Click to expand...

Thanks for advise, yeah i guess i'll join accenture and will work like a good boy :rolleyes:
 
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