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

Early in the morning, 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%. Late in the evening, 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%.Java Training CoursesThe 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.Industry TrendsIn 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. Now, even the rosiest predictions for growth rates barely break out above 10%. Of course, there are many reasons for this; but the fact remains that whether from the perspective of investors or insiders, the ground has moved out from beneath the IT services industry. This is of broader significance than is generally perceived. In almost every way, IT services was the original animal spirits industry that played the starring role in what we love to call the 'India Story'.