But!

There's more to the story than just the IT vendors.

The impact on India also translates in form of component manufactures and suppliers from the engineering domain. The effect in view of Vikas K, MD, DesignTech, a CAD and PLM specialist from India, would be direct and high.

DesignTech Systems recently announced a tie-up with first Autocluster Development and Research Institute, which brings them together for simulation softwares and services to auto component makers so as to reduce operational costs along with development duration up to 50 per cent. Now for such breed of tier-2 or 3 suppliers like these, GM's new development can mean two things.

The first and short-term view is of a negative fall-out.

There would indeed be a trickledown effect on tier I and tier II suppliers for Auto majors as Ananth points out too.

"They will see an impact on their business, which in turn will impact the business of Indian Service providers, who work with them and have them as key accounts. Additionally, once GM emerges out of bankruptcy, it would have majority of the ownership with the US government and this would impact offshoring from GM per se for at least some time."

But look beyond bankruptcy and there could be business opportunities in the new GM scenario.

As reported, part of General Motors' reorganization in Chapter 11 bankruptcy will be the creation a fresh company being called New GM, which can be cut out in an estimated 60 to 90 days. Now with the imperative on rationalisation,which can translate into more opportunities for both Indian IT and OEM related solution vendors, this can mean fresh business as GM tried to consolidate in all ways.

For instance, DesignTech, is currently supplying solutions on optimization, cost reduction, component reliability etc to OEMs of GM. The post-bankruptcy GM, would definitely be an opportunity for companies like this, agrees Vikas K. "Specially for low-volume but high-knowledge work, the opportunities would be immense."

As Zinnov's Ananth adds, major assets of GM will be sold and most of them will be acquired by private investors or auto majors from Korea, China and even India. Hence these companies would in the long term become potential clients for Indian Service Providers.

"The vacuum created by GM in the market, will provide an opportunity for auto majors from Europe and Japan to create a greater market share for themselves. Indian Service providers will hence have to look to grow their accounts with these companies."

Let's wait and watch what the new tarmac brings.