I-T majors Infosys, Wipro and HCL remain "cautiously optimistic" of their growth in Europe on the back of steady deal pipelines, notwithstanding the uncertain economic conditions in the region.
"The uncertainty in Eurozone stems from low-performing regions, primarily driven by the electorate push against the austerity measures. The need for growth combined with continued high unemployment has put strain on the infrastructures; and Greece followed by Spain, Italy and Portugal are contributing to the uncertainty," Wipro Consulting Services vice president Roop Singh told PTI.
European clients remain cautious with regard to I-T spends and Wipro is seeing steady growth in the service lines focussed primarily around cost and revenue drivers, he added.
Business from the European region is the second largest after the US and contributes 20-25% of the revenues of Indian software exporters.
A slowing US market, which accounts for more than 60% of the Indian I-T industry's exports, has forced players to expand their business in Europe and Asia.
The confidence in the European region may be based around the fact that most Indian I-T companies do not have significant exposure to troubled economies like Greece and Italy.
Agrees Infosys Member of the Board, Head of Europe and Global Head of the Financial Services and Insurance BG Srinivas.
"We do not have direct exposure to businesses in Spain, Italy and Greece. Our revenue exposure has been higher from markets like UK, France, Germany, Switzerland and the Nordics. We continue to see growth from these countries as clients are looking to partner with us to identify areas for growth and process efficiency," Srinivas said.
He added that the deal pipeline for the company continues to be steady in this region.
"We have a few large deals in the pipeline, primarily in financial services, energy and utilities and telecom sectors," Srinivas said.
Europe is the biggest market for Infosys outside the US a and accounted for 21.9% of revenues for the fiscal ended March 31, 2012.
HCL Technologies is also bullish on the region, which contributes about 27% to its revenues.
"We have seen continued traction in Europe, with many first-time outsourcers. Our key differentiator in Europe is strong local presence, and we stay committed to increase our market share," HCL Technologies President Europe Rajeev Sawhney said.
The geography booked a robust performance in view of strategic investments made by it in Nordics, Germanics and Benelux region, he added. In the last 2 quarters, HCL Technologies has booked over $2.5 billion in large transformational deals and Europe contributed 54% of this.
The I-T companies are, however, watchful of the situation in the region.
Wipro, for example, said it is working with its customers to "review any contingency plans that they would have, in the unlikely event of Greece's exit".
"CIOs are cautiously optimistic and the recent uncertainty has drawn them much closer to the businesses to drive value. While the spend is being down in smaller chunks, it is more focused on 'change the business' while continuing on 'run the business' initiatives," Singh of Wipro said.