US recession could be good for Indian IT firms

India should look at the possible recession in the US as an opportunity as domestic IT companies are more cost effective, Infosys Chief Mentor N R Narayana Murthy said.

“The fact that there may be a slowdown in the US means people will become much more concerned over better value for money...we could look at it as an opportunity,” Murthy told reporters on the sidelines of a function here. The Indian IT industry fears that a possible slowdown in the US economy could lead their companies to cut IT spending.

As Indian IT companies are earning major revenue from the US, recession is being looked at as having a negative effect on the topline. Murthy said that instead of an adverse effect, it was more likely that India benefits if the US economy, the world’s biggest, witnesses a slowdown.

Read Complete Story