Golden age of Indian IT is over for good: Value Research

According to recent reports of Valuse research, The golden age of IT is predicted to be over for good as top IT companies coming out with disappointing first quarter results.

According to the research firm,Infosys announced its quarterly financial results that were a huge disappointment for the investment community. The company's US dollar revenues, which are a key metric for a business like Infosys, had shrunk by 1.1%. Later on the same day, India's largest IT services company TCS came out with its own numbers. These were a lot better than Infosys with the US dollar revenues being up by 3.4%.

The stock markets reacted to both sets of data as expected. If one were to step back and take a longer view by casting one's eye back over the decade past, then the story looks different.

In the decade or so to about 2007, the US dollar revenues of Indian IT majors were growing by anywhere between 30% and 45% a year. The first big decline came in 2009 when growth dropped to single digits. After that, there was some recovery but the original pace was never achieved again.