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‘Credit crisis to affect IT growth’

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October 11th, 2008 · No Comments

The current financial crisis may cast a pale of gloom over the country’s IT sector, as 15-18 per cent business of the Indian outsourcing companies from banking, insurance, and the financial sectors has now become uncertain, a senior RBI official said.

Reserve Bank Deputy Governor Rakesh Mohan said the financial crisis in the advanced economies and the likely slowdown in these economies could impact the IT sector in India.

The Times of India writes-

“About 15-18 per cent of the business coming to Indian outsourcers includes projects from banking, insurance, and the financial sectors, which is now uncertain. The current developments with respect to the US financial markets are very eventful, and may have direct impact on the IT industry,” Mohan said speaking at IMF-FSF high-level meeting on the ongoing financial turmoil.

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