European interests may have put up a steel wall stalling Lakshmi Mittal’s entry into the European market, but for the Indian IT services and BPO industry, there is no stopping at the European doorsteps.
Cost competitiveness pressures from businesses are driving bonhomie between European and Indian IT companies. “The revenues from European market touched $4,093 million in FY 04-05 contributing nearly 23% to the total exports. In 2005-06, Europe will contribute over 24-25% of the exports to the tune of $6 billion,” according to Nasscom Vice-President Sunil Mehta.
But the entry is fraught with challenges given the archaic labour laws and regulatory stipulations, like the one in France where laying off 100 people could require as many as 30 approvals.