"Black Hole"- well thats what the BFSI collapse sounds like and the tech companies are heading towards tough times.
On an average BFSI firms spend 6-10% of their revenues on technology and as the finanical cirsis is deepening the industry is expecting a cut of 15 to 20% on the total offshore business to which India accounts for 75% to 80%.
The competition is further going to stiffen as the consolidation in the BFSI will trigger revision of existing contracts with their technical partners. Like Merrill Lynch's takeover by BOA would leave satyam computers unsure whether the combined entity will retain it on its vendors list as BOA has been working with Infy and TCS only. Or this kind of a situation might invite price war which remains to be vitnessed in the comming years.
The above article has been carved out from a story in Nov 1 08 outlook by Nandita Datta