I read yesterday that Circuit City has filed for bankruptcy even before the holiday season officially started. They are among the larger retailers to fall victim to the current economic conditions. For a Prayag study, we have been talking to people associated with the retail industry across the globe. The mood is defintely gloomy and we can expect more names to perish. From the Indian IT service prvoider angle – As one person who I spoke to summed it accurately, service providers need to evaluate the fundamentals/business health of the retailers before working with them. And, there are enough retailers in sound financial health who would be making tech investments in this period to establish a competitive lead when the environment gets better. As usual, it is back to basics and retailers will expect IT to demonstrate tangible value before investing. Ever wonder why it takes situations like this for companies to become grounded in reality and act in a sensible way!