CASH STRAPPING OR AUSTERE DRIVE - WISDOM DAWNS ON CORPORATES TO TIGHTEN EXPENDITURE

Consequent to various developments in the economy and the slump in business the corporates have tightened their purse strings this Diwali bidding goodbye to the glamorous gifts

This accounts for almost 30% drop in this gifts sector Anotehr welcome note is any discretionary expenditure is deferred There have been lots and lots of austerity measures today's Corporate wants to put in practice, turning away the lavishness with which they were treading all these years.

IT and ITES and there majors are some of the biggest whose spends on gifts are phenomenal. With the slow down in the USA, the Chennai Corporates, nay all Corporates across the country , are busy exploring ways and means to apply brakes on its festive and other avoidable spends.

This in my opinion is a welcome departure from the usually luxurious way of spends these corporates were used to all these years The wasteful expenditure that is incurred in the name of development of business needs defintely without any doubt to be curbed to contribute to savings and consequent earnings

Wisdom dawned on the IT/ITES Corporates today who have gone to the extent of switching off unnecessary working of air conditioners, lights et al which were never been the case earlier years - this is taken up for strict compliance - thanks to the recession and slow-down of economy in the U S A and its consequent impact on us.


In fact added to the above, many of the Corporates are doing away with their annual meets, dinners and conferences, besides travel and take to communication by way of Video Conferencing in their place.

This attitude of consciousness will continue for few more months and years as the volume of business is bound to get affected specially for IT/ITES and BPO majors with uncertainty looming large on their revenues from US clients now.