Insurance sector is one of the fast growing sector in India, lot of players are around now these days like Birla Sunlife, HDFC Insurance, HSBC Canara, Star Union Dai-ichi Life Insurance, Reliance Life, DLF etc beside that lot of service provider companies are providing solutions to them like Mastek, TCS, EDS, CSC, CTS, Solecorp etc. All companies are trying to follow the benchmark & Industries standards of MNC's.

Global Economy Slowdown, Global Recession, Cash Flow Crises, Pink slip well-known jargons are now these days. Is this true, Insurance Carriers & IT companies in India are also struggling to balance their funds. Big companies, Dream Companies, Blue Chip Companies, Top 100 companies have applied cost cutting majors, giving a reason of economy slowdown & Recession. Giving pink slips to employees, however Indian Companies have never paid global salaries to their employees, so why Cost cutting, Salaries cut downs, reduce cost, reduction in the infrastructure etc.

If you see last Q1,Q2 & Q3 results no company claimed the losses. Why in Q4 cost cutting majors? Let me list out the mistakes committed by companies in the past during good times and the cost of such mistakes are being paid now by Import & Export, Banking, Insurance, Software companies etc including their helpless employees.

1. Many Companies, in both manufacturing and services sectors, have acquired foreign companies at very prices, at double or triple times of their company values. For that they have borrowed large funds to acquire white elephant. At those times, the Indian companies were in a high and had illusions of making their companies into global empires with in no time.

2. Many Indian companies have diversified and have invested money in different domains like, Asset Management, Financial services, Telecom etc. where they were not experienced.

3. Many companies in software services sector, in their greed for growth & in their ambition to be counted upon in the rat race, have created large bench of unproductive employees.

4. Many company did not preserve the profit generated during the good times for rainy days. Hence when the business cycle turned down, these companies have no preparation and no contingency plans in hand to boldly face the situation.

The Best thing is that India is fewer sufferers compared to several other countries. Thanks to Indian public sector banks and special thanks to RBI to not permitting exotic derivative & foreign financial products to enter in India. Hence we can say there is only slow down in India and not a recession. A recession is defined two consecutive quarters of negative growth. India is still expected to grow about 6.5 to 7% in FY'09 and by about 5.5 to 6% in FY'10 (compared to the 8 to 9% growth in the last four years).

Certainly companies are earning less profit but still they are in profit because profit is coming from the blended income, not from the individual projects and products. Rest is management decision to continue or not to continue with the same.