Usually, the global clients of offshore-centric information technology services companies start budget preparations for the next year towards November and December every year.
However, given the uncertain global environment, the clients seem to be holding their cards close to their chests.
S Gopalakrishnan, executive co-chairman of Infosys, discuses these and other issues with Business Standard.
Edited excerpts:
IT clients usually start preparing their next year's budget in November-December every year.
What are you hearing from them?
We are not getting clarity about clients' IT budgets because of the uncertainty. We'll get a better picture only in January or February.
I expect some impact on the budgets.
A recent report says at least one of every four clients have planned to cut their IT budgets by up to 10 per cent next year.
I prefer to wait than say there is going to be a budget cut.
Businesses are actually better now than the last time (during the last recession).
They are better prepared and they have more cash to spend.
If the overall sentiment improves, businesses may actually start spending more. So, I am not completely sure that budgets are only going to be cut.
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