Indian IT companies not afraid of Recession..?

Sowmiya Sriram
Indian IT companies not afraid of Recession..?

The IT sector is in a state of panic as inflation rises around the world and major powers fear a recession. The continued decline in IT stocks has caused great fear among IT companies and IT staff as the dot com bubble and the financial crisis of 2008 have had a major impact. IT and tech stocks have been facing sharp declines since the beginning of 2022 due to the fear of recession, while US and indian investors have been facing heavy losses.
Kodak Institutional Equities has said that indian IT companies are safe in the face of this sluggish and volatile market as all countries around the world are currently spending heavily on IT services. It is not the IT sector or the financial services sector but the supply chain and retail sector that will be most affected by the recession awaiting in the world. And this recession vulnerability is expected to change soon.
More and more financial services companies are currently investing heavily in IT services and wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW'>digital services. It has kept more and more customers for indian IT companies from the financial sector.
Projects, where large sums of money have been invested in IT service development, can be put on hold if a recession occurs, but the plans of existing banks can be put on hold and deferred as soon as possible to reduce costs temporarily.
Thus indian IT service companies are not likely to face a large-scale impact and if the impact is high the number of new job creations will be reduced, otherwise cost-cutting work will take place.
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