Why are IT companies in India mostly debt free?

ScottGem

Well first I don't know if that statement is true or not. But if it is true, its possibly because they don't have a lot of liabilities. Other than salary, equipment and space, there is little for them to owe.

posheak

Because IT industry is not capital intensive. It does not require largescale investments in infrastructure like, say, steel or telecom. All you need is a building and some computers to get started. Hence there is not need for them to borrow money.

ScottGem

Ya know, I'm getting a little tired of seeing answers from you that clearly show a lack of knowledge about the question being answered. You are probably going to think this rude as well, but those of us who have worked this site for awhile take a certain amount of pride in the quality of the answers being given. We want to maintain that quality. We welcome anyone who wants to volunteer their time and knowledge to help, but we don't welcome people who post incorrect or just plain bad advice.

In this instance, you clearly have the wrong idea of what is involved in setting up an IT company. While a lot depends on the IT company, they are all not a bunch of geeks sitting in front of cheap personal PCs. An IT firm may require a very heavy investment in infrastructure. Servers, networking equipment, a clean environment and a lot of other things may go into setting up such a company. Most businesses replace computers on a 3 year basis. So there is a continual expense. However, the ratio of assets/income to liabilites can be very high in an IT company. So much so that they can stay relatively debt free.

Again, I don't want to discourage you from helping. Some of your answers have been good advice. But too many have been way off the mark. I suggest you take greater care in selecting what questions you answer and making sure of your answers before posting.

posheak

so I was just being singled out, I never said my answers are the perfect!

this line hurts "we don't welcome people who post incorrect or just plain bad advice"

Dont explain yourselves, I know you really want me out. Its as if I haven't scanned this forum and see nonsensible posts/answers. You are the rude here, really.

posheak

an advice is something you give based on your own knowledge, which doesnt necessarily translate to be the best

ScottGem

I find it interesting that you focused on the negative aspects of what I said.

Let me say YOU are not being singled out, but your advice is. I have nothing against you personally, despite the insulting PM you sent me. My concern is first and only for the quality of advice given out here. I would (and have) treated anyone who frequently gives poor advice the same.

No one wants you out. But they do want to keep up the reputation for quality advice this site enjoys. Clean up your act and you will have no problems with anyone here.

I can't read every answer posted. I only look at threads where I think I might be able to help. If there are others posting bad advice, there are other regulars here who will take care of it. We all make mistakes and that is taken into account. I would not have spoken out as I did if there wasn't a trend of bad advice. You want to think I'm rude, be my guest. I think its a defense mechanism to avoid admitting to yourself that you have given poor advice.

You can take my advice as the constructive criticism it was intended to be or not, that's your choice. But I can tell you, we are a close knit community here. A community that takes pride in the quality of the product it puts out.