Posts
![[Most Recent Exchange Rate from www.kitco.com]](http://www.weblinks247.com/exrate/24hr-inr-small.gif)
THE father of the Pentium chip, a breakthrough chip for Intel, Vinod Dham, believes that Indian outsourcers will be the beneficiaries of the current crisis in the US.
Mr Dham, who is now a venture capitalist like many other successful tech entrepreneurs of his time, says the stories of gloom and doom are not entirely unfamiliar to him. "After the dotcom bust, everybody said Indian IT growth story was over. But look where they are now. The same thing is likely to repeat itself," he said.
For one, Mr Dham's Indo-US fund, New Path Ventures, will continue to make investments as aggressively. The first fund of $189 million has invested in around 18 ventures so far and Dham intends to raise a second fund sometime in the middle of next year.
Investments are largely early stage and in tech or tech-enabled sectors such as mobile and online services, and order process outsourcing. There are increasingly two opposite views that are emerging about the future growth of Indian IT firms and Mr Dham's views put him firmly among the optimists. "We are immediately impacted in India because exits will happen. But the damage to India will be much lesser. Banks are well-regulated and there is still growth. There is no inherent weakness and I am bullish on India in the long-term," he said.
Mr Dham has been travelling in Asia since mid-September and he says there is far more fear in China because their exports are manufacturing-led. So less consumption by the US will have a direct impact, while India's exports to the US are more services-based, he added.
Like others who are of the view the crisis will benefit Indian outsourcers, Mr Dham extends the argument that as revenue growth is hurt, companies will look at reducing costs and at cost-efficient locations like India to grow profits. But there are more detractors to this view than supporters. A study by ET,reported in its Friday edition, found IT scrips were among the biggest losers in the fall of Sensex to 10,000.
Dimmer prospects for Indian IT as their large financial services clients cut costs and consolidate is one of the major reasons driving this fall. Things are expected to get worse in the quarters ahead as the impact of the fewer contracts that Indian outsourcers are signing today reflect in their future revenues.
n.shivapriya@timesgroup.com
Mr Dham, who is now a venture capitalist like many other successful tech entrepreneurs of his time, says the stories of gloom and doom are not entirely unfamiliar to him. "After the dotcom bust, everybody said Indian IT growth story was over. But look where they are now. The same thing is likely to repeat itself," he said.
For one, Mr Dham's Indo-US fund, New Path Ventures, will continue to make investments as aggressively. The first fund of $189 million has invested in around 18 ventures so far and Dham intends to raise a second fund sometime in the middle of next year.
Investments are largely early stage and in tech or tech-enabled sectors such as mobile and online services, and order process outsourcing. There are increasingly two opposite views that are emerging about the future growth of Indian IT firms and Mr Dham's views put him firmly among the optimists. "We are immediately impacted in India because exits will happen. But the damage to India will be much lesser. Banks are well-regulated and there is still growth. There is no inherent weakness and I am bullish on India in the long-term," he said.
Mr Dham has been travelling in Asia since mid-September and he says there is far more fear in China because their exports are manufacturing-led. So less consumption by the US will have a direct impact, while India's exports to the US are more services-based, he added.
Like others who are of the view the crisis will benefit Indian outsourcers, Mr Dham extends the argument that as revenue growth is hurt, companies will look at reducing costs and at cost-efficient locations like India to grow profits. But there are more detractors to this view than supporters. A study by ET,reported in its Friday edition, found IT scrips were among the biggest losers in the fall of Sensex to 10,000.
Dimmer prospects for Indian IT as their large financial services clients cut costs and consolidate is one of the major reasons driving this fall. Things are expected to get worse in the quarters ahead as the impact of the fewer contracts that Indian outsourcers are signing today reflect in their future revenues.
n.shivapriya@timesgroup.com
0 comments:
Post a Comment