Will global recession impact India or not?
Recession will pave way for more outsourcing to India
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The recession impact is expected to be there for three to four quarters of 2023. Though the recession might take away some jobs and revenue for a few quarters, it won't last long. We are likely to have some impact on the IT sphere, more on the technology companies and less on the BPM sector comparatively. But due to the recession, more outsourcing will happen in Indian companies to reduce the costing to neutralise the impact up to some extent.
On the other hand, the recession will stabilise the attrition problem that we are facing for the past one and half years. Due to Covid-19, there is an abnormal increase of attrition by 70 per cent which will now get stabilised. Already attrition rates have started declining.
Due to the pandemic, the cost of resources and cost of hiring has increased significantly. Now that gets corrected due to the recession. Covid created a serious demand supply gap of talent in the IT Industry, which indirectly impacted the practical upskilling part. Now the recession or the fears over recession corrects that also.
The IT Industry is seriously concerned about the upcoming recession but at the same time is also optimistic it will offer solutions to other problems.
- Sreedhar Kosaraju, President, IT Association of Andhra Pradesh (ITAAP)
