Indian IT firms unaffected by Credit Suisse crisis
The Indian and global IT firms are not affected by the hard plunge in market cap of the Swiss banking major Credit Suisse as its exposure to the banking major remains limited.
According to sources, Business Process Outsourcing (BPO) firms such as Cognizant, Tech Mahindra, Wipro and many other big names have worked with Credit Suisse on several outsourcing projects, but the account size of the outsourcing contract is not huge enough to create material impact on the business of any Indian IT firm.
“There will not be any material impact of Credit Suisse incident. Though we don’t know exactly what the fate of the bank will be, all indications are there that it remains strong,” said Pareekh Jain, an IT outsourcing advisor & founder, Pareekh Consulting.
“However, in case of a bankruptcy kind of situation, there will not be much impact on Indian technology firms as it doesn’t come in the top 10 accounts of any company,” Jain added.
Credit Suisse is one of the biggest banks of Europe which had $1.6 trillion in assets under management in 2021. However, their financial stability have started to draw parallel with the 2008-2009 Lehman crisis which led to share price dropping by 50% this year with a direction to possible bankruptcy.
