Indian tech companies give up on the US move to Asia

NDIAN SOFTWARE SERVICES firms have started looking toemerging markets like the Middle East and Africa as the US economy continues toflounder.
The sub-prime mortgage crisis has been a blow to the entire economy,including the IT industry, and to avoid getting significantly effected by it,India’s export driven firms are now looking to the Indian market itself, aswell as to Asia-Pacific, Latin America, the Middle East, Africa and EasternEurope, where technology spending is booming.
According to research outfit Gartner, spending on information technology inemerging markets will likely reach $1.1 trillion this year, up from $964billion in 2007. The Gartner report adds that by 2011, it estimates that thisamount will have reached $1.3 trillion, with compounded annual growth of about8.5 per cent, almost double the 4.3 per cent growth rate in mature Markets.
The Indian software and outsourcing industry itself is growing at atremendous rate, with sales reaching $64 billion in 2007, up from $48.1 billionin 2006. The US currently makes up about 60 per cent of those sales, but astrengthening rupee and a US economy rushing headlong into recession doesn’tbode well for Indian companies like Satyam Computer Services, InfosysTechnologies and Wipro, which is why they are looking elsewhere for business.
Satyam's Aggarwal, who heads the business in Asia Pacific, Africa, India andthe Middle East noted, "Recent events in the US have only re-confirmedcompanies' belief in diversifying risk". He also told Reuters that hiscompany was in the middle of negotiating several big deals (ranging from $10million to $30 million) across Asia-Pacific, the Middle East and Africa.
Wipro is expanding into developing markets, announcing already this year thatit would be taking on a $50 million, five-year outsourcing contract from anIndian retailer, and establishing a joint venture in Saudi Arabia worth $100million, from Saudi Arabian Airlines.

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Reuters