CHENNAI: When three big financial institutions from Europe sought government support on Monday, it deepened the worries of Indian IT companies, which had pinned their hopes on Europe to drive growth.
The main concern for IT firms is that Monday’s development could be a symptom of an impending slowdown in Europe, which contributes 20-30% of revenues of top six Indian IT companies.
In the past, these companies consciously tried to expand their European business to spread their risk. They did not want to put all their eggs in the US market, their biggest market. But troubles in Europe seem to be closely following those in the US.
“We are keenly observing the development in Europe, where we get 20% of our business. There is no information yet from our customers there, so we are in a wait-and-watch mode. But we feel the nationalisation of banks means that business will not go down since there will be some recapitalisation,” said Satyam Computer Services CFO Srinivas Vadlamani.
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October 02, 2008
IT companies worried over European financial crisis
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