Europe will bounce back by 2013 end
If you compare the volume growth of this year to last year’s 3.2%, with the same set of problems of furloughs (mandatory time off work without pay), the dip is quite significant. Your comments.
Furloughs is nothing new and has been happening since 10 years in the US, traditionally in the manufacturing and hi-tech sectors. In October, we were expecting the normal trend of temporary shutdowns. But by November, we analysed that some companies that have traditionally not gone for furloughs are going for it. The base in 2013 is higher than 2012. That is why I am not particularly worried about Q3. We had said at the beginning of the year that growth will be front-ended and will be reduced compared with last year. Furloughs will not continue for the next quarter because that is the budgeting quarter for our clients. We are no longer in a situation where the customer says he wants a certain number of people.
This quarter has seen a 2.4% decline in growth from Continental Europe. What could be the reasons behind this?
For us, Europe will bounce back in calendar year 2013, since the deal pipeline is strong. The regions we are in typically
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