IMPACT OF

RECESSION ON I.T
Submitted By:
Trapti Garg(001)
Sarabjeet Kaur(010)
Manish()
Harshvardhan()
Mohita()
Adil()
Devarshi()
 
 INTRODUCTION
 The current global economic slowdown has its
epicenter in the United States (US) but the
contagion is being witnessed in all major
economies of the world.
 Several countries are experiencing rapid
contraction in their Global Domestic Product,
rising unemployment levels and an overall
slowdown in the pace of investment activity.
 The global slowdown has also affected the
business climate within India and the growth
rate of the Information Technology (IT) and
Information Technology Enabled Services (ITES)
 CONTINUE . . . .
 But it is argued by experts that the
performance of the Indian I.T software and
services and ITES sector. While impacted by
USA economic slowdown was catalyzed by a
revival in technology spending during the
first half of 2009.
RECESSION AND ITS REASONS
 “A recession is a decline in a country's gross
domestic product (GDP) growth for two or
more consecutive quarters of a year. A
recession is also preceded by several
quarters of slowing down.”

 Causes:
1. An economy which grows over a period of
time tends to slow down the growth as a
part of the normal economic cycle.
 CONTINUE . . . . .
2. A recession normally takes place when
consumers lose confidence in the growth of
the economy and spend less.

3. Investors spend less as they fear stocks

values will fall and thus stock markets fall
on negative sentiment.

 Stock market and recession are related

CURRENT GLOBAL SCENARIO &
UNCERTAINITIES INVOLVED
 The overall impact of the global financial
crisis has been felt in Asia / Pacific in terms
of the local stock exchanges and currency
exchange rates and lower GDP growth
forecasts for 2009.

 Impact on stock market

 Impact on exchange rates