Business Daily from THE HINDU group of publications
Thursday, Jun 04, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Thursday, Jun 04, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
|
|
|
|
|
Info-Tech
-
Outlook Markets - Stocks
BL Research Bureau The impact of the US recession is beginning to show in the non-BFSI verticals of IT companies. After the collapse of Lehman Brothers, no other major banking or insurance major was allowed to go bust, thus holding up revenue visibility for Indian IT majors. But with Chrysler and GM filing for bankruptcy, Indian vendors such as TCS, Wipro and Satyam Computer, may face new challenges in their manufacturing vertical. In 2006, Wipro and Satyam had signed five-year deals with GM worth $300 million and $150 million respectively. Reports suggest that GM is also a $100-million-plus client for TCS. TCS is also a vendor for Chrysler. With a bankruptcy status, a substantial restructuring may be put in place. While the final structure of GM is unknown, Chrysler may be sold to Italian carmaker Fiat. Wipro has issued a statement that the GM bankruptcy will not have a very significant effect on its revenues, as GM contributes less than one per cent of Wipro’s revenues. The receivables for the company from GM stood at $8 million. However, challenges may remain on GM reducing its overall IT budget. The automotive sector, which is a key driver in the manufacturing vertical of these companies, being in trouble means that reliance on BFSI and to some extent telecom verticals may have to increase to make up. But given that BFSI sector is yet to stabilise and with the US still grappling with a recession, the outlook remains challenging for Indian IT vendors. More Stories on : Outlook | Stocks | Automobiles | Tata Consultancy Services Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2009, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
