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IN IT SECTOR
Road map
    What is recession?
•
    Causes of recession
•
    How to know recession?
•
    Impact of recession
•
    How to come out of recession.
•
WHAT IS RECESSION?
Causes of recession
• Currency crisis
• Energy Crisis
• Under consumption
• Over production
• Financial crisis
CURRENCY CRISIS
ENERGY CRISIS
UNDER CONSUMPTION
OVER PRODUCTION
FINANCIAL CRISIS
IMPACT OF RECESSION ON IT
         SECTOR
The impact of Recession is
 unpredictable. The main effect of
 recession is in IT sector and is mainly
 related to the job loss and
 unemployment
How to come out of recession?

                  Corrective
                   Steps
                   Should be
                   taken to
                   come out
                   of
                   Recession
Important Point:
           Today, it is a market Economy




  Producers;                         Consumers;
Can produce and                     Can decide to
  sell at their                      buy or not;
     prices
Government has 2 plans

                                        Monetary
        Fiscal
                                         Policies
       Policies
                                        (By RBI)
      (By Govt.)




Government influences the   RBI manipulates
economy by changing how     the available supply of
it (Government) spends      money in the country
and collects money
Fiscal      Government influences the economy by changing
       Policies     how it (Government) spends and collects money


                        More money
1] Tax cuts for
                        available for
  businesses or
  for individuals
                                                     Demand
                        spending

                                                     picks
2] More                 Individuals get
                                                     up;
Spending                salary and
  by Govt. to           spend
                                                     Market
  create jobs           money

                                                     can
3] Automatic
                                                     recover;
  fiscal policy;        Some income to
                        unemployed
Unemployment            people to spend
 Insurance
Monetary      Government manipulates the available supply
      Policies     of money in the country


                       More money
1] Reduce
                       available for
reserve
                       bank
                                                     Demand
  ratio                to give loans

                                                     picks
                                                     up;
2] Lower the           Individuals take
  interest rates       more loan
                                                     Market
                                                     can
3] Use its own         It becomes an
                                                     recover;
  reserved             income to Govt.
  money to buy         to inject money
  Govt. bonds          into the market
BIBLIOGRAPHY
• www.wikipedia.com
• www.authorstream.com
• www.slideshare.com
QUESTION ?
THANK YOU

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impact of recession on it sector

  • 2. Road map What is recession? • Causes of recession • How to know recession? • Impact of recession • How to come out of recession. •
  • 4. Causes of recession • Currency crisis • Energy Crisis • Under consumption • Over production • Financial crisis
  • 10. IMPACT OF RECESSION ON IT SECTOR The impact of Recession is unpredictable. The main effect of recession is in IT sector and is mainly related to the job loss and unemployment
  • 11.
  • 12.
  • 13.
  • 14. How to come out of recession? Corrective Steps Should be taken to come out of Recession
  • 15. Important Point: Today, it is a market Economy Producers; Consumers; Can produce and Can decide to sell at their buy or not; prices
  • 16. Government has 2 plans Monetary Fiscal Policies Policies (By RBI) (By Govt.) Government influences the RBI manipulates economy by changing how the available supply of it (Government) spends money in the country and collects money
  • 17. Fiscal Government influences the economy by changing Policies how it (Government) spends and collects money More money 1] Tax cuts for available for businesses or for individuals Demand spending picks 2] More Individuals get up; Spending salary and by Govt. to spend Market create jobs money can 3] Automatic recover; fiscal policy; Some income to unemployed Unemployment people to spend Insurance
  • 18. Monetary Government manipulates the available supply Policies of money in the country More money 1] Reduce available for reserve bank Demand ratio to give loans picks up; 2] Lower the Individuals take interest rates more loan Market can 3] Use its own It becomes an recover; reserved income to Govt. money to buy to inject money Govt. bonds into the market