HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  


Search:



The Web

Rediff








Business
Portfolio Tracker
Business News
Specials
Columns
Market Report
Mutual Funds
Interviews
Tutorials
Message Board
Stock Talk



Home > Business > Business Headline > Report

IT czars see no impact of war on business

Anusha Subramanian in Mumbai | February 15, 2003 13:09 IST

The war clouds looming over Iraq have not dampened the optimistic outlook of the Indian infotech sector.

A dipstick survey of 12 CEOs of IT companies at Nasscom 2003 conducted by Business Standard revealed that none of them thought war would impact their businesses. Business, they unanimously said, would go on -- stronger than usual.

This is partly because CEOs have factored in possible disruptions ever since the events of September 11.

Said Arun Kumar, managing director of Hughes Software Systems and Nasscom chairman, "We have been through this situation before and this won't come as a surprise."

Added Deepak Ghaisas, CEO of i-Flex, "The war seems inevitable. If it happens then we will have to market India. Even geographically, Iraq is farther away from India than Afghanistan is. If the war in the latter country did not have too much of an impact, Iraq will be a tremor that will barely be felt."

Most CEOs agreed that the worst-case scenario involved curbing travel and therefore, decision-making and order-processing. Those who already had orders, they said, would work harder at retaining them.

Some CEOs even sensed opportunities. Said one of them who requested anonymity: "In good times, offshore business development is always good. In bad times, it will only get better and application outsourcing will move up."

The only apprehension that some CEOs voiced was the possibility of a long-drawn war.

Said Pheroz Vandrevala, executive director, Tata Consultancy Services, "If it is a short-term war, the impact won't be significant. But if it is long term, then the impact would largely be related to geo-political issues. With the major customers of the Indian IT industry spread out globally, there is the worry of a potential widespread backlash which will then impact businesses."

While most CEOs considered the war an inevitability, there were some who didn't even consider this a possibility. Among them is N R Narayana Murthy, chairman and chief mentor of Infosys.

"I have full faith in the Americans and I, therefore, do not expect a war. I think we should be worried about how we can move forward," he said.
Powered by



Article Tools

Email this Article

Printer-Friendly Format

Letter to the Editor



Related Stories


'US-Iraq war will hit IT sector'

Nasscom bullish on IT jobs

War fears hit IT stocks



People Who Read This Also Read


Reliance Info stringing film deals

Crude supply raised for refineries

Forex reserves touch $74.67 billion







HOME   
   NEWS   
   BUSINESS   
   CRICKET   
   SPORTS   
   MOVIES   
   NET GUIDE   
   SHOPPING   
   BLOGS  
   ASTROLOGY  
   MATCHMAKER  
© 2003 rediff.com India Limited. All Rights Reserved.