Can IT Industry Survive the Economic Crisis in US?

jobAccording to the recent projection of Wall Street, the economic crisis is far from over. One crisis gets over, another surprise pops up. Some of the small IT firms will be purchased by big corporates because big companies want to diversify their business for the banking trouble. Most of the start-up companies faced the worst hit due to weakening of cash flow. As per Forrester Research, the financial sector generates 20 -30% of the revenues for IT industry.

One of the analyst of the Research firm said,  “43% of business plans to reduce IT spending this year, while the financial sector, 49% of the IT department plans to cut the budgetThe signs at the beginning of this year have been very clear that the cost-cutting is likely to start already.”

Many big comanies like IBM, DELL, HP can sail through the economic crisis because of their strong presence in R&D system, Supply system etc. On the other hand, lot of small companies may perish for cash crunch. Compare with those who supply services such as data center outsourcing, companies which  specializes in high-performance hardware and software manufacturers were the least affected from the financial crisis.

Source: Forbes

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