Eurozone crisis no threat to IT cos: NRN

Austerity measures may further slowdown growth

“No, I don’t think so,” he said when asked whether there is a cause for the domestic IT firms to worry about the impact of the ongoing Eurozone debt crisis on them. Murthy, who was here to attend a meeting in Indo-Pak peace initiative, said, “I think our IT companies have performed reasonably well even last year and now everybody is saying the situation is improving. From that sense, things look better.”

Global recovery
Recovering from the global economic slowdown triggered by the collapse of Lehman Brothers in September 2008, the domestic IT sector is now concerned over the European crisis which may lead to cancellations of many orders.

There are concerns that the 1-trillion dollar Eurozone crisis fund and austerity measures in some Eurozone economies may further slow the European economy which may result in project cancellations, price-cuts and consequent pressure on their margins. However, drawing example from Infosys, Murthy said, “I don’t think so (there is a cause for worry) because we (Infosys) ourselves have been expanding in Europe. We are going to open a new office in Germany soon; we have just inaugurated a new office in Paris,” he added.
The national IT industry body Nasscom also opined that the IT sector does not feel threatened by the evolving crisis in the Eurozone economies.
Press Trust of India