Indian IT makes quiet progress in Europe

Infotech bigggies based in Europe seems to have weathered the current euro zone crisis.

india Updated: Feb 08, 2012 23:13 IST
Shrenik Avlani
Shrenik Avlani
Hindustan Times

Infotech bigggies based in Europe seems to have weathered the current euro zone crisis.

While domestic major TCS signed four big deals in Europe and the UK, Infosys clocked two $500 million-plus deals of the total 14 deals that the company won in Europe. HCL has also signed deals with AstraZeneca in the healthcare sector and Deutsche Bank in the financial services sector in Europe in the last six months.

TCS CEO N Chandrasekaran said that though the macro-economic conditions in Europe are difficult, the company has won good deals on the ground.

“We are cautious and observing the eurozone crisis but we see a healthy deal pipeline. It’s the discretionary spends that are seeing delays,” he said.

BG Srinivas, head of European operations and board member, Infosys, said Europe was Infy’s second-largest market, contributing around 22.6% to the company’s revenues.

“Despite the crisis in Europe, we see good opportunities for growth and have been investing in expanding our capability across Europe and enhancing our strengths in the near shore centres in Czech Republic and Poland, which are beginning to reap benefits for the company,” said Srinivas.

“As economic uncertainties prevail, the biggest challenge facing IT service providers is to remain relevant to changing customer needs,” a HCL spokesperson said.

“Organisations are increasingly looking at IT services as strategic growth enabler.”

“European companies are now open to offshoring their projects due to the economic crisis,” said Ankita Somani, analyst, Angel Broking.

“Earlier they used to outsource to local vendors. Also there is a lot of vendor churn in Europe which is landing a lot more deals in India,” she added.

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First Published: Feb 08, 2012 22:24 IST