Signs of recovery or still in hospital?

The signs that the global economy is far from getting back to normal lies in the first quarter results of Indian software leaders, TCS and Infosys. It does not mean that the recession clouds are still there and we need to really worry about the direction of Industry as whole, but it is not easy sailing and sunny all around yet.

The good news is, the spending is back, but not in the scale of what it used to be earlier. But there is spending with new implementation and upgrades. Not so good news is that prices are either stable or under pressure. Bad news is in order to deliver the growth and volumes, recruitment has gone up and thus the attrition has gone up.

The consolidated figures for the two firms indicate that both have to fight hard to remain where they were, though year-on-year tend e show TCS in better shape. Both have recorded a sharp fall in margins by 2.9 percentage points on quarter-on-quarter basis. This is way below than what it used to be some quarters back.

In terms of top line growth, TCS was clearly ahead last year, but in first quarter both have recorded a clear growth of 14 percent on quarter-on-quarter basis. This is driven by strong demand across markets and industries, which is clearly a very good sign that growth is happening across all industries.

But overall it can be said that though things have improved significantly, it would take at least a quarter to get back to the growth terms. Industry needs to innovate in business processes and try to find ways to help customers to reduce the total cost of ownership of the software.

Period of relaxation and self reflection!

Last four weekends have been spent out of house and amidst nature and mountains. This was the time of relaxation and self reflection.

First, had been to Manali for a short vacation; it’s been a great experience and I was amused by the majesty and beauty of the Himalayan range of mountains. In fact it was a dream comes true for me as it has been a childhood dream to visit the Himalayas. The drive to Rohtang pass an experience by itself.

Next two weekends it was in Massurrie, it was an offsite trip from office, but the true beauty of the place, the experience of living out of tents, sheer beauty of mountains and clouds playing around; it was an awesome experience. The encounter with nature made me to think a lot.

In between this busy schedule, we had management and board meetings as well.

This time was really helped me to reflect myself and my life as whole perspective. I learnt so many new things during this time and it gave me a new set of direction in life. I am not sure if I become stronger, but I have for sure started being sensible to the things around me.

It also reflected me the work I am supposed to do in next one quarter and this is the time to act, perhaps act faster.