Good News, Fortress Europe Opens Up to Indian IT

The debt crisis is prompting European governments and companies to hunt for savings and that has led to more IT outsourcing to India, reports Pranav Nambiar for The Times of India. “Europe accounts for about 20-30% of Indian IT's revenues, but a large portion of this comes from the UK,” Nambiar reports, adding that France, Germany, Spain, Italy and the Nordic nations offer potential growth markets for India. “Indian vendors have also made huge investments in Europe in the past couple of years and have appointed country heads recruited locally,” Nambiar rwrites, adding that Indian IT companies are setting up so-called “nearshore centers” in Hungary, Poland, Portugal and Romania. However, the CEO of Infosys advises caution rather than celebration over such developments, noting that a rough recession for Europe could sharply reduce IT investments. – YaleGlobal