The European market has been on a steady downward spiral with the technology budgets being delayed and businesses moving away. The Indian market on the other hand has been stable and offers sanctuary to those companies that haven’t seen the expected growth in the European sector.
Consulting and software giants like Accenture are confident about the stability and growth of the Indian market. The European market conversely, has not been the same since the economic slump.
The economic environment in Europe has not been conducive to growth with the unemployment rates skyrocketing, the falling economic growth rates and the reduced government spending. Infosys, an Indian software giant, reported a drop in the business processes outsourced from Europe as clients curbed spending.
Avinash Vashistha, an IT industry veteran with over twenty five years of experience and chairman and managing director of India operations at Accenture, speculated over the European and the Indian market. He said, “Europe is clearly in a weak position right now. But the domestic IT market is growing rapidly due to increased IT investments and we expect this trend to continue.”
Avinash Vashistha also believed that the domestic IT market was on a growth spurt owing to the increase in the number of Indian companies investing in technology to improve individual business outcomes. The Indian IT market has been estimated as reaching the 45 million dollar mark by the end of the year 2014.
Accenture cited a significant drop in client spending in the consulting arena and the third quarter revenues were reported below the expected analyst estimates in its full year outlook released last month. The drop reported was not significant as the company has estimated to leave 2013 with a 3 or 4 percent sales growth as against the 5 to 8 percent that was expected earlier.
Accenture and many other software giants remain hopeful despite the European market slump, pinning hopes and bets on the effervescent Indian market.