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Indian IT companies shut offices temporarily due to Hurricane Sandy; Remain Unaffected

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DQI Bureau
New Update

Despite shut-downs across entire US, revenue for Indian IT and BPO companies is unlikely to be impacted. Almost all the Indian IT companies decided to shut their offices on the East Coast on October 29th and 30th. They have taken precautionary measures and have asked employees not to attend office until the situation gets normal.

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The Indian IT companies, having operations on the US coast, have set up war rooms to monitor the situation and they do not expect their business to be adversely affected by Hurricane Sandy. Several top companies such as Infosys, Cognizant, TCS, Mahindra Satyam, and HCL are closely monitoring the whole situation and working with local authorities to ensure the safety of their employees. Almost all the Indian IT companies, having operations in the Hurricane prone regions have a strong business contingency plan.

Infosys has 17 offices in the US-Bridgewater, Charlotte, Delaware, New York, Hartford, and Quincy. Cognizant has 2 offices on the East Coast-Teaneck and Bridgewater. India's technology and business-process outsourcing industry generated $69 billion in revenue from exports in the fiscal year that ended March 31, of which 62% came from the US. The industry is expected to grow 11-14% to $76 billion-$78 billion in the current fiscal year that began in April.

"Yes, it did have an impact on us. If not directly, the hurricane has impacted our clients, particularly in areas like New Jersey (the US). Power outages could impact their operations. We are closely monitoring the situation and are in touch with our employees. But the good thing is that the whole (government) machinery has been kept on vigil 3 days in advance," CP Gurnani, chief executive designate of Mahindra Satyam-Tech Mahindra Satyam, said in a media interview (Hindu Business Line).

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Industry analysts believe the impact would likely be limited as most of the Indian IT and BPO companies have contingency plans on track. According to Mumbai based brokerage Prabhudas Lilladher don't expect any impact on operations as most companies have business continuity plans in place.

"In view of Hurricane Sandy, as a precautionary measure, our Teaneck and Bridgewater offices will be closed on Monday, October 29. All associates in the potential impact zone have been advised to closely monitor local news stations and take sufficient precautions to ensure their safety. We are closely watching the situation and are prepared with business continuity measures to deal with any emergency," a Cognizant spokesperson said in another media interview.

 

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