Monday, October 13, 2008

Bail Out Software !!!

The recent past was really bad for all businesses all over the world, whether it is Bank, Oil, Manufacturing or Software. I was reading some articles about this why this happened in US and came to know some facts which I would like to share with you all.

US Bailout
In the US, borrowers are rated either as 'prime' - indicating that they have a good credit rating based on their track record - or as 'sub-prime', meaning their track record in repaying loans has been below par. Loans given to sub-prime borrowers, something banks would normally be reluctant to do, are categorized as sub-prime loans.

Typically, it is the poor and the young who form the bulk of sub-prime borrowers. Due to the housing boom in US, banks gave loans to the sub-prime borrowers in very huge ratio by their subsidiaries for huge rate of interest. Banks thought they the real estate is going to get very good returns though the barrowers don’t return the money they took. The banks were aware that these loans can turn to defaulters that could be the reason they imposed very high rate of interest on them, this caused the problem for banks and increase the number of defaulters.

Software Bailout(?)

There are many questions coming up particularly in India regarding software industry. Everybody on the road you meet is discussing about software industry. I don’t know how many people know what’s happening in the market or in US or in India.

The questions I got in last couple of weeks are as below …….

- Is software affected with this financial problem of US?

- Is software going down?

- Companies removing their employees?

- Some companies going to close soon?

Some statements from people (who think they know everything).

- Hey, you know Software is going down may be with in one month many companies are going to close.

- You must be aware, that many people coming back to India after loosing their jobs in US.

- I think you must be prepared to loose your job soon.

Thanks to all these market and software experts but I do have some questions for them.

Do you know how many software applications, products and clients using these software?

How many of you know how many software engineers you need to maintain the current available applications and products?

How many projects are in development, design, maintenance and support phases?

If we don’t know any of the answers for above questions why are we commenting on the things like layoffs and some industry is going to fail or many software engineers going to loose their jobs.

My Conclusion

According to me, there could be some slog time for software industry until the world economy settle down and start growing again. But this is not an industry which will fall completely in future. Though they have many features and facilities in current applications the clients requirements are always changes and they need somebody to help them out in analyzing, design and code their requirements. So, the languages may change, operating systems may change, frame works may change, databases might change too but the industry remains.

Your views would be appreciated ……..


  1. true s/w industry will never go down but cant say the same abt the jobs. u can't disagree with the fact that many ppl in US lost their jobs cos we were hired here cos here labor is cheap and now china is picking up fast and labor in china is even cheaper than that of India.

    watch this if you ever get a chance.

  2. Thanks a lot for your comment and I completely agree that many countries are competing with us now and the cost for companies in India is also increasing rapidly. Lets be positive for now and at least for few more years..... by the way I saw that movie already :)


About Me

My photo
Bangalore, Karnataka, India
Programming today is a race between software engineers striving to build bigger and better idiot-proof programs, and the Universe trying to produce bigger and better idiots. So far, the Universe is winning. I am a proud participant of this Race !!!!