🤬 Bengaluru’s very own recession

With company forecasts and office rents flying high, a recession should be the last thing on our minds… right?

Story so far: Infosys says they’re expected to see a 14-16% annual revenue growth. Based on the last quarter, office rents in the city have seen a 12% yearly jump. Wherever you go, there are clear indications of heightened activity. Normally, these are good things. But there’s a catch this time.

• When you look closer, the profitability of our tech companies seems to be rapidly falling and the rest of this year doesn’t look too great.
• Infosys, Wipro and even Tata Consultancy Services have all seen narrower margins last quarter.

What now: All we can do is hope that the US doesn’t go into a recession. Right now, we’re seeing a slowdown in the West which directly affects profit margins here. There’s also high competition among employable coders, and the costs there leave less room for company futures.