Indian IT firms are heavily dependent on services provided to US financial services. The financial crisis of billions and billions of dollars write down by US investment banks and customary deposit banks like Washington Mutual will create a big hole in TCS and Infosys in quarter 3 and 4 of 2008 is what Forrester CEO writes in his blog. TCS is effected more with its 43% of revenues coming from its financial services where as Infosys gets 34% of revenues. This is just a start in financial melt down that is predicted to have a spiraling effect on other sectors like technology being #1.
Forrester CEO George Colony in the blog writes :
Some IT vendors focus on financial services, and could find their business mildly tightened. Tata Consultancy (TCS) gets 43% of its revenues from financial services; Infosys 34%; IBM 29% (but only 6% from US financial firms). So, these vendors –- plus software vendors that sell risk management software or trading systems — could experience some delayed or canceled contracts.