Archive for December, 2008
December 31st, 2008 - TCS amongst the Lowest Rating @ GlassDoor
Sorry to interrupt in the information sharing regarding the IT Industy.
According the Glassdoor rating’s on the Best Places and the Least rated Companies to work for, TCS is 16th place from the bottom (Lowest ratings).
And Netflix & Adobe top the Best companies in the IT space.
December 31st, 2008 - where are we now? part-1
With the Banking industry having liquidity problems.. with respect to the Knowledge Industry, Banking & Financial Services companies got the first hit.
BFS as it is famously called in the IT Industry, is one of majority contributor for revenues. Banking industry had been the foremost in trying new technologies and making their systems up-to-date. The major reason for that one is, majority of Banks have their backend in Mainframe systems and either to e-enable those systems or replace them with new ones, they need the help of IT companies. The IT companies derive major chunk of their profit margins from the new Development projects. When the Banks are in cash crisis, the first thing they cut on is non-core development projects.
Ok, now which projects are non-core projects? New projects that are not critical for survival or compliance of the Banks.
Once the BFS industry got hit from the IT Industry perspective, next hit is the Manufacturing Industries.
Manufacturing with Logistics & SCM (Supply Chain Management) is the next other industry that had affected IT Industry. Major ERP providers cater to the Manufacturing domain and the IT companies rely on these companies for executing the projects.
Next in line is the related domains like Steel, Cement and other Metals.
The Manufacturing and Banking industry going down, the Automobile industry was also brought down. When the other industry got hit, the Automobile had problems sustaining the production. With the consumers not ready to buy, the inventory (cars & trucks) piled up with the dealers not able to sell. With the dealers not able to generate any money by selling the cars, the manufacturers had problems keeping the production UP. Two weeks back we had news about Chrysler & General Motors having problems to sustain and needed bail-out from the Government.
When the Auto Industry got down, lot of IT companies depended on the revenue from executing projects for these big Auto industry.
Other industries that got affected included Telecom & Media.
In the next post we will see which are the industries that survived with regards to the IT industry.
December 31st, 2008 - What happened
Hello and welcome to first official post from TechCurry.net!
The industry is currently under deep pressure (s**t). In the beginning of last year (2007) we got the news about the Sub-Prime crisis. Ok.. for whom “sub-prime” means another theorem here is the small explanation. In United States every individual has a unique identification number similar to our Income Tax PAN (Permanent Account Number). It is called Social Security Number (SSN). If you have a Bank Account, Credit Card, Your Salary, etc everything is tied to an SSN. With this, we have the Credit Bureaus who constantly get all your credit information (any loan, credit card payments, apartment rents, Mobile Bills) and provide you with a rating. This will tell whether you pay your credit bills promptly or defaulting them.
Sub-prime is a class where people who have less credit ratings (or had defaulted before), but Banks provide them the credit facility (loan) at a higher rate of interest.
When the sub-prime crisis hit, lot of loan defaulters means lot of non performing assets for the Banks. This affected the majority of the Housing / Real estate industry. The Banks which had given loans to people for buying their property now have people defaulting on the re-payment. You can argue that the Bank can takeover those properties back and auction/sell it in the market. But if the Banks have lot of these properties to sell, there will less buyers in the market. If there are less buyers in the market, the return on the properties will automatically go down. This cyclic effect made the Bank less with money and more with properties. This led to the Credit or liquidity crunch for Bank.
Banks are the backbone of whole world’s ecosystem. When they face the liquidity or hot cash crunch, every other industry are bound to be affected.
December 29th, 2008 - Welcome to TechCurry.net!
Hello and Welcome to the TechCurry.net blog where we will cover the Knowledge Industry and the future of the Knowledge Industry.
Occasionally we will introduce and profile startups providing solutions to the problems of the world with the help of user friendly solutions.
Watch out more on this space soon.