Tuesday, February 19, 2008

Recession / Slowdown ?

I hear a lot about impending US Slowdown and how it will affect the IT budget and hence the outsourcing budget but from whatever I have seen and talked to people, there might not be a huge slowdown atleast w.r.t IT budget. Infact just read that gartner also says the same but they say that the sales cycle might increase (in a way affecting the overall outsorcing spend for a given time period).

Our experience at S7 Software has been really good of lately but I am yet to ascertain the reason for it - either there is no slowdown or there is a slowdown and more companies are dumping the new development, new R&D and new IT costs but spending it on reengineering or modernizing their legacy software (which costs a fraction compared to new development) or Open Source adoption in a modular way.

Our main expertise and our focus is in Software porting, migration, re-engineering, open source adoption and modernization and of lately we are seeing a huge pipeline of these projects and my gut feeling is that IT departments across the US are slowly making the right alignment for the impending slowdown (if it happens BTW) and embracing and getting ready to tackle it by going the way of less expensive migrations, re-engineering and open source adoptions rather than new investments or new developments.

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