Most of the period in 2008, Credit Crunch was the buzz word for most of the financial instititions globally. This credit crunch has resulted in the downfall of huge financial empires such as Lehman Brothers. This Financial Crunch has more than significant effort on IT Industry.
This Credit Crunch in the Global Financial Industry is a punch to Information Technology as most of the investments by Information Technology Companies result in ROI only after a certain period of time. Given the present crunch situation in the Financial Industry it is tough for the companies to wait for such a period of time and are holding of big projects such as upgrading dual core PC's and so on and are postponing their decisions.
Budget pressures are expected to drive businesses away from the licensing deals offered by companies such as Microsoft and the need for dedicated in-house IT support teams. This is causing the companies to move to open source technologies and the companies operating in this line of business can forsee a good opportunity. Indian outsourcing companies face considerable risk from their reliance on the global banking sector, with the country's top five service suppliers depending on the financial sector for about 45 percent of their business.