Government owes Rs 5,000 crore in contract payments to IT services companies

MUMBAI, INDIA: Industry body NASSCOM has expressed concern over the pending dues to the IT services firms, by various government organizations.

According to NASSCOM, various government departments owe about Rs 5,000 crore in contract payments to IT services companies.

Large contracts implemented by IT firms include digitization of passport services, implementation of Aadhaar and the modernisation of India Post.

“The delay in payments is hitting the margins and revenue of Indian IT companies, and the likes of Tata Consultancy Services (TCS), Infosys and Wipro have now gone slow in bidding for various government contracts,” said R Chandrasekhar, President, NASSCOM.

He said, that the association has shared the names of the defaulters with the finance IT ministries respectively. “But we have not seen any movement, and it is a matter of huge concern.”