In an interview to CNBC-TV18, Ganesh Natrajan, vice chairman and managing director of Zensar Technologies says, the impact on the Indian IT sector, atleast on Indian listed companies, is marginal. “We do about USD 5-6 million of work for the government. That’s entirely onsite because it’s more of support and infrastructure support. I do not think the entire Indian IT sector, the listed Indian companies, are at all dependent on the government for business. So, I won’t worry about that,” he explains.
Also read: US ‘bring jobs home’ act a concern for Indian I-T, says experts
Below is the edited transcript of his interview with CNBC-TV18’s Latha Venkatesh and Reema Tendulkar. Also watch the accompanying video.
Q: Do you see the likelihood of the US government introducing such mandatory clauses of onshoring? What is the kind of impact on Indian IT?
A: First of all, you got to segregate federal government and local government. There have been instances in the past where local government has talked about doing only things onsite. It’s not improbable that something like that happen, especially in an election year.
The impact on the Indian IT sector, atleast on Indian listed companies, is marginal. You take a company like ours, we do about USD 5-6 million of work for the government. That’s entirely onsite because it’s more of support and infrastructure support. I do not think the entire Indian IT sector, the listed Indian companies, are at all dependent on the government for business. So, I won’t worry about that.
It does impact large corporations like IBM or HP or Computer Sciences Corporation. They do a lot of work with the government. If they are doing part of their work in their India centers then that might have some impact. So, net-net, we need to watch out in terms of its impact on employment in this country, but on the Indian IT listed stocks, very little impact.
More to come.
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