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India is getting its 60 percent of revenue in outsourcing only from America and many companies are doing this.It is said that nearly $40 billion is invested in Outsourcing.Most of the youngsters are working in the IT companies and BPO’s.Now they feel that they could be in danger since Obama is elected as a new president.This is because Earlier in election campaign Obama has announced that the offshore drilling from American will be reduced since even there exists unemployment and also his view on the H1B visa.This made to fly butterflies in the stomach of Indian BPO’s and IT companies employees.There has been a lot talk on this issue.

But according Obama the India and American relationship will be made stronger and more deals will be made between the two nations in future.So there wont be any threat to the outsourcing companies.Infact after the problem of economic slow down is solved, the outsourcing will be increased and India will get more opportunities from America.Moreover the Indian software companies are moving towards the Japan and this will really make the difference.Moreover after winning the elections Obama said that he is a follower of Gandhi and he got more Indian friends.This shows that he will improve the relationship between India and United States for sure.This statement could be a senseless but that’s the fact.There will be a break in relationship between Indo-US relation if the outsourcing is reduced.So according to my view Obama will never indulge in cuttiing down the offshore drilling.

So there is no need to panic.This is the time for both India and America to boom and both the nations can develop stronger if their future economic reforms are a successful one.

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Right from the start of the Global economic recession,India too faced its drop in the sensex points.Both BSE and Nifty faced a huge depression in the points.Today the markets went  down to below  8000 mark and it is still expected to go down.The sensex has been dropped down to 62% in 192 days and now the investors are in trouble.Even many banking sectors have raised their eyebrows and this huge fall in Sensex will really put the whole nation in  panic .The Finance Minister and RBI governor are in real pressure to solve this crisis and some regulations has to be done in order to save the markets.It is expected that the interest rates may be cut down by RBI.According to the Finance Ministry the liquidity is the problem.

This week’s start in Markets is a bloodbath and mostly all the companies shares turn into red and hardly one or two in green.The sensex went below 7500 and it is according to the finance ministry that if the drop  goes by 10 percent then the markets will be closed and no trading will be done.The recession still continues even after the G7 summit and the Asian and Europe leaders summit in Beijing.The leaders at the global level are seriously discussing about this recession and the anxiety among the investors should be overruled immediately.If this continue’s then many banks are sure to file bankrupt.

But last week the RBI governor Subbarao has said that the Indian economy is in healthy position and  there is nothing to worry.Even the Finance Minister insisted the same.Even after their statements the markets drop went on.Economists say that for a big boom, a backslide is happening.Many shareholders decided that their patience have execeeded limits and now they are going to find some other way to keep thier money a safer one.The major industries and corporates are hit by this recession severly and they have faced a huge loss.Experts also say that the recession can be ended after the november US elections.

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No sector has escaped from the global recession and the major ones got affected are Banking sectors and Information Technology.The IT companies in India got stuck up with the global recession and the result of this is the revision on salaries,no hiring, reduce in Recruitment.

Technology service providers are expected to suffer a sharp slowdown in demand heading into 2009, forcing them to diversify from financial services and pump more resources into regions outside the United States. 

Amid fears of a global recession, companies — especially banks, worst-hit by the credit crisis — have already started to cut or delay spending on information technology services such as consulting and software development. 

However, while there seems lot of despair around, there’s also some hope. Like according to some analysts the present slowdown is not as bad as the 2001, there are others who say that recession may bring long-term advanatages for IT companies by creating new opportunities both in terms of markets and verticals. 

Here’s looking into the despair of slowdown as well as hope that it is showing.Analysts say the worst is yet to come for the IT services industry, which has cut contractors and frozen hiring as customers postpone short-term projects. 

“The December quarter will be the first full quarter after the credit crisis and the results could be quite ugly,” said Kaufman Brothers analyst Karl Keirstead, adding that a prolonged recession could lead to more IT job cuts. However, IDC analyst Rebecca Segal was more optimistic on the outsourcing sector than Keirstead, saying, “Outsourcing can run counter-cyclical as you could see it as a way of saving money.” Amid the spending cuts, analysts have made comparisons with the bursting of the dotcom bubble in 2001. 

Infosys Technologies Ltd, India’s No 2 IT services exporter, cut its full-year revenue forecast due to the global financial crisis. 

Even IBM, the world’s top tech services provider, gave weaker-than-expected quarterly revenues, though analysts say cost controls helped it beat on profit. The financial industry accounts for close to 20 per cent of global IT services revenue, according to IDC. Manufacturing makes up about 22 per cent and government about 18 per cent. Segal said project-based services — which account for a third of the market and include areas such as application development and consulting — were slowing.

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American markets plunged over 100 points in the opening session as Wall Street awaits US lawmakers’ voting on a modified $700-billion bailout package on Wednesday (October 1). Meanwhile, spurred by the revised bailout proposal, major Asian and European indices posted gains, with India’s 30-share Sensex jumping nearly two per cent for the second day in a row.

The US Senate is all set to vote on the modified rescue plan which has incorporated tax cuts and higher limit for insured bank deposits, after the House of Representatives defeated the financial package on Monday.

The benchmark Dow Jones Industrial Average plummeted over 100 points to 10,750.23 points in the early morning trade while Nasdaq Composite was trading marginally down at 2,074.20 points.

A media report quoting sources today said that components of the alternative plan include a guarantee from the US treasury of up to 100% for bank losses resulting from failed mortgage-backed securities originated prior to the plan’s enactment.

The alternative plan reportedly, also includes allowing companies to carry back losses — arising in tax years ending in 2007, 2008 or 2009 — back five years, generating a tax refund and immediate capital.

It also envisages allowing a ‘repatriation window’ for profits earned by US firms overseas. Along with proposed tax cuts for businesses, the modified bailout plan includes raising the federal deposit insurance levels to $250,000 from the current $100,000.

The proposal for increasing the deposit insurance limits has the backing of presidential candidates and many American lawmakers. The finer aspects of the Senate legislation are also looking at ways to prevent the more than 20 million middle-class taxpayers from feeling the pinch of the alternative minimum tax.

According to the media report, the Republicans in their alternative plan also propose to allow banks to treat losses on shares of preferred stock in Fannie Mae and Freddie Mac as ordinary losses, not as capital losses.

On the other hand, the Asian indices was led by India’s 30-share Sensex, which continued its bull run for the second consecutive day, jumping 1.52% . The benchmark index closed at 13,055.67 points. Japanese benchmark index Nikkei 225 and Hong Kong’s Hang Seng index also ended in positive territory.

In Europe, London Stock Exchange’s FTSE 100 index shot up 1.70 per cent and was trading at 4,985.89 points in the afternoon trade. Nikkei 225 went up nearly one per cent to settle at 11,368.26 points while Hang Seng index inched up 0.76 per cent to end the day at 18,016.21 points.

However, South Korea’s Kospi index and Singapore’s benchmark index Straits Times Index closed marginally in the red at 1,439.67 points and 2,358.91 points, respectively.

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