Friday, June 24, 2016

Impact of historic #Brexit vote on Indian #IT/ITeS sector

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:-
  • 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. 

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.