As per the initial analysis by National Association of Software and Services Companies (NASSCOM) of the near term impact of historic Brexit vote on Indian technology and services sector includes:-
Europe is the second largest market for the Indian IT-BPM industry, constituting almost 30% of the industry’s export revenue of about $100 billion. The UK plays a key role within this market. In addition to representing a large share of our members’ activity in Europe, many use the UK as a gateway for further investment across the European Union.800 Indian companies employing 110,000 individuals in UK currently.
- Likely decline in the value of the British Pound, which could render many existing contracts losing propositions unless they are renegotiated.
- The uncertainty surrounding protracted negotiations on the terms of exit and/or future engagement with EU could impact decision making for large projects.
- Indian IT companies may need to establish separate headquarters/ operations for EU, may lead to some disinvestment from UK.
- Skilled labour mobility across EU and UK could be impacted.
- Changes in the financial system, banks functioning.
#VoteLeave campaign team celebrating in front of Parliament - they've run an incredibly efficient campaign pic.twitter.com/BSCG8vg2ul— Brexit Watch (@BrexitWatch) June 24, 2016
Europe is the second largest market for the Indian IT-BPM industry, constituting almost 30% of the industry’s export revenue of about $100 billion. The UK plays a key role within this market. In addition to representing a large share of our members’ activity in Europe, many use the UK as a gateway for further investment across the European Union.800 Indian companies employing 110,000 individuals in UK currently.
