Impact Of Recession On It Industry

Export-oriented small and mid-tier IT companies were able

to weather the storm of rapid appreciation in the rupee
against the in 2007 and early 2008, but now they are faced
with the stark reality of dwindling orders as the global
financial crisis continues to cause a meltdown across
countries and industries, the IT & ITeS sector in India is
beginning to feel the heat.
Amid fears of a global recession, companies, especially
banks, worst-hit by the credit crisis have already started to
cut or delay spending on information technology services
such as consulting and software development but in the long
term the impact will be minimal as the industry’s
fundamentals are strong and the value proposition continues
to hold good meanwhile it may be the time to prune down
the and ensure cost-efficiency in organization operations.
First have a look at sectors will be affected and how much
The sectors most severely affected are Banks, Financial
Services, Real Estate, Infrastructure and Information
Technology, Automobiles
Those which will feel a moderate impact of the global
crises are Power, Retail, Hospitality and Tourism
The sectors least affected (directly) by the slowdown are
Pharmaceuticals, Oil & Gas, FMCG, Media & Entertainment
Tata Consultancy Services is likely to be worse off than its
peers because of its significant exposure to Merrill Lynch.
Merrill is also a significant client for Satyam Computer
Services and is evident from the July-September 2008
results which recorded a net profit of Rs 1,271 crore (Rs 1271
crore) up only 1.5 per cent as compared to corresponding
period a year ago.
Infosys also accounts for almost 35.7% share from BFSI and
62% share from America while Wipro accounts for 25% and
63% respectively and will be severely hit.
Impact Of Recession On The Indian Retail Market

The retail market in India is facing slowdown with the

ongoing financial crisis happening across the world markets.
Since the markets always have internally linked with each
other, the impact of the crisis is generally shared among all.
The following circumstances are creating unwelcome
interruptions to the Indian retail industry. The industry
hopes for the best alternations to overcome the acrimonious
situations.
Markets in recession worldwide and India too:
The current meltdown in the world markets is shaking the
globe today. Not even a single country seems to be off the
hook. The high level of inflation has been a wet blanket for
the global markets. The roots of the world markets are nearly
pulled away with the heavy downfall of the American
financial giants. Amongst many countries, India too not
exempted from the impact of world financial crisis. All this is
leading to a temporary recess for the markets from a regular
busy schedule. However, these fluctuations are not new for
global market. For the decades long, markets, across the
world, have been witnessing such ups and downs. But the
ultimately fact is that the market growth rate is always
constantly high when comparing to such downfalls.
Economic slowdown:
The Financial crisis is adding to the pressure on global
economies. The International Monetary Fund (IMF) now
sees the world entering a major slowdown. The recovery
would depend on three key factors: commodity prices
stabilizing, the crisis in the US housing sector bottoming out,
and emerging economies providing a source of resilience.
But, if the current crisis were to last longer, the emerging
economies are more likely to be affected.

Hospitals across California and the country are reeling from the effects of the
economic downturn and the troubled financial markets.

Patients are putting off medical care because of job losses, job insecurity and
high out-of-pocket expenses. As a result, the number of paying patients and
profitable elective procedures is down. At the same time, the number of
uninsured patients whom hospitals treat is rising.
Like just about everybody else, hospitals are losing money on their investments.
To operate, they need to regularly borrow money. Yet now, when they need
working capital the most, the credit markets are all but frozen.

And in California, low Medi-Cal reimbursements for poor patients and the state
budget crisis are making matters worse.

The latest complications follow a dozen years during which more than 70
hospitals closed in California, and there is concern that some may not pull
through this downturn.

"We've got a number of hospitals that are absolutely on the brink," said Jan
Emerson, spokeswoman for the California Hospital Assn.

Financial analysts and insiders expect the turmoil to accelerate a shakeout.

"The weaker hospitals will continue to get weaker in a bad economy, and the
stronger hospitals will find a way to survive and build market share," said Chris
Van Gorder, chief executive of Scripps Health, a nonprofit chain of five hospitals
in San Diego County.

Most alarming to hospital administrators, healthcare advocates and patients are

the financial, economic and government crises all hitting at once.

Hospitals are facing a "triple whammy," said Anthony Wright, executive director
of Health Access California, a patient advocacy organization. "You have the
healthcare safety net seeing more uninsured people in the system at the same
time employers are scaling back coverage. At the same time, the state is seeking
to further cut healthcare programs."

Just about every hospital is affected in one way or another.

At Cedars-Sinai Medical Center in Los Angeles, financial counselors are dealing

with a surge in patients with high-deductible health insurance who are unable to
pay their share of the bill.

In Oceanside, Tri-City Medical Center is struggling to plug a reported $400,000-a-

month hole blown in its budget by the sudden escalation of the cost of its debt.