Financial market impact quote from Zinnov

BANGALORE, INDIA: Amit Aggarwal, Engagement Manager, Zinnov Management Consulting in his quote on the key impact that the current state of global financial affairs will have on the Indian Offshoring industry:

*  In the short term, it will create an impact on the companies which have high percentage of banking revenue. There are going to be no new application development or system integration projects from any banking customers. So the forecast that companies have in terms of new projects coming in, will have to be brought down. Moreover, it will also create a cascading effect of talent pool crunch on other banking captives. Financial instability of large banks might influence talent pool in their captives to consider other safe exit options like non-banking captives, product companies, IT services etc.

* Infact on the long term, this provides lot of opportunity for Indian companies especially banking KPO companies as they can drastically reduce the cost structure of companies such as Merill Lynch and Lehman. And hence, we think India will play an integral part in transforming the industry cost structure over the next five years.