'U.S. slowdown not to affect Indian software industry'

NEW DELHI, DEC. 26. The National Association of Software and Service Companies (Nasscom) today said that the slowdown of the U.S. economy would not adversely impact the Indian software business.

"The slowdown in the U.S. market would rather help Indian software exports as more American companies would outsource software from India due to cost-effectiveness," Mr. Dewang Mehta, President of Nasscom, said here.

Citing the example of 1992-93 slowdown of the U.S. economy, Mr. Mehta said the Indian industry had benefited during the period as American companies turned to India for outsourcing its software development operations.

Mr. Mehta said the Indian IT industry had also spread itself across various regions for revenues, and dependency on the U.S. had reduced to 60 per cent at present, from 95 per cent in 1991.

Commenting on the declining margin of software companies, Mr. Mehta said the general average industry margins were not likely to come down for software companies.

- PTI

Send this article to Friends by E-Mail

Section  : Business
Previous : Pentamedia in acquisition spree, to absorb 3 firms
Next     : Equities suffer further setback