Nasscom: Short-term impact on outsourcing

The fourth-largest software exporter from the country Satyam also said that it was "concerned" over the developments in the US. "We are very concerned about the recent development in the BFSI segment in the US. However, the Lehman Brothers episode will not have any impact on Satyam," Satyam Computer CFO Srinivas Vadlamani said. HCL Technologies, however, said that the two US majors -Lehman and Merrill Lynch -were not its clients and therefore would not adversely affect the company.

When one puts all of this together, there is some loss but given that most of the top five companies have over 40-45 per cent exposure to BFSI space, then mood is worried and concerned right now, said an analyst.

Already finding it tough to cope with the slowdown in the US, the beleaguered Indian IT vendors are likely to see some reversal in revenues coming out of their banking practice with the recent happenings at global level.

Nasscom, which is of the view that the current crisis is a consequence of the subprime crisis which began last year, said many companies that were being directly impacted by the turmoil last year had prepared for this eventuality.
But the association is optimistic on the challenge being contained as it said "India's value proposition continues to be strong. As an industry, we have worked as partners with our customers and will continue to do so, even as the financial services sector realigns itself."