Pune handling recession much better than Bangalore
There is plenty of anecdotal evidence that we are in the midst of a major recession, and it is having a significant effect on the Indian software industry. Now there are hard numbers giving an exact idea of how much the recession is expected to affect the software industry in different cities in India, and the results are interesting, to say the least.
INHR Associates, a Noida-based human resources consulting company, conducted a survey of over 400 CEOs, CFOs, heads of business units and other executives with P&L responsibilities from 250 software companies across 10 cities in India to get their estimates of the impact of the recession on their business in 2009.
The key contribution of this report is in giving a quantitative estimate of the impact of the recession on the Indian software industry in 2009. Overall, the respondents expect a 19% YoY drop in revenues in FY2009 with the first quarter being the worst. 1Q2009 is expected to show a whopping 35% drop and the situation will gradually improve each quarter with 4Q2009 actually ending on a positive note with an expected growth of 2% compared to the same period in FY2008.
The expected revenue drop ranges from 8% in the case of Delhi/NCR and 9% for Bangalore, all the way up to 42% for Hyderabad, which is clearly the worst affected. 15 other cities, all are reporting declines in the same range.
Surprisingly, Pune and Chennai are expecting a growth in their topline revenues inspite of the recession - with Pune clocking in at a huge 17% YoY growth.
Of course, the big news, as far as PuneTech is concerned is that Pune is far outperforming all its peers in handling the recession.
PUNE surely ROCKS.... :-)