The US economy is heading for tough times as the unemployment has once again started to climb up, and the housing sector is not showing any signs of recovering. That is putting lot of pressure on the government and it does not have the capability to spend more money on stimulus, as it is already running on dangerous debt levels.
That is going to push down the technology spending by the US and European companies in the coming months, and that would mean lower income and profits for the US technology majors. That is bad news for the entire US technology sector as the major companies would start resorting to more job cuts in the near future.
Also most of these companies would be going in for outsourcing in the coming months to cut costs. That could be advantage India once again.