Mid-Size IT Companies Likely to be Impacted by US Slowdown

NEW DELHI: Mid-sized IT services and BPO companies are vulnerable to the adverse impact of US slowdown due to exchange rate volatility, slower deal closures, inflation and low billing rates than their bigger counterparts, a study said on Monday.

"The mid-size IT services companies are more likely to face the combined pressure of exchange rate risk, lower billing rates, domestic inflation and slower deal closures," the study by the CyberMedia publication for the outsourcing industry said.

The large vendors with multi-shore delivery capabilities like TCS, Wipro, Infosys, Satyam and HCL Technologies would be better equipped to exploit new opportunities in the slowdown period, it added.

However, the study said slowdown in US economy will have moderate impact on the global IT services and BPO industry.
The economic slowdown in the US would impact profitability and revenues in the short term, the study said.