- January 15, 2009
- Posted by: admin
- Categories: Blog, World Economics
Satyam Computer Services, Wipro, Megasoft Consultants Ltd, and another 3 major software exporters from India are on WB’s list of debarred companies. According to news agencies, it is due to inconsistencies in their financial representations, charges of bribery and lack of proper documentation of invoices. Satyam alone has been banned for eight years.
There is little doubt that South Asia, esp. India has emerged as a major exporter on the IT scene, owing to its cost effectiveness and HR ‘deposits’. WB’s decision couldn’t have come at a better time, as India’s software and services exports were expected to rise 21 to 24 percent to around $50 billion in the year to March 2009, moderating as a downturn in the U.S. economy crimps outsourcing demand.
The fifty billion figure is a heavy amount to lose to imports, for any economy, US or otherwise.
Does this course of action imply a shift in the US IT sector policies, or is it really a co-incidental act of justice, simultaneously administered against 3 of the top software exporters of India.
Furthermore, how do you feel this will impact the global IT/outsourcing scenario, accompanied by recession sinking its fangs into the West.
Will this move have the desired effect? Or will India find better business elsewhere? Most importantly, will other nations capitalize on the situation at hand, and look towards capturing major stakes on the IT scene?