E-WORLD: 'Discretionary IT spends down'.

from BUSINESS LINE, September 29, 2008 Niteen Tulpule, Director-Corporate Finance, KPMG, decided to play it safe when eWorld asked him about the recovery from the US slowdown. "It is still early to comment on the timeframe for a turnaround at this point. The full impact of the sub-prime crisis has still to play out." However, he sees positives in commodity prices coming off their recent highs and oil prices declining as well as some positive economic data trickling in from the US.

"From an India perspective, the strengthening of the US dollar versus the Rupee eases the immediate pressure on the profitability of the Indian IT industry." On European expansion as a de-risking strategy, he says given the challenges of that market, Indian companies will have to look at onshore presence and focus on developing local language capabilities.

While confirming that there …