US slowdown an opportunity: Murthy

MUMBAI: India should look at the possible recession in the US as an opportunity as domestic IT companies are more cost effective, Infosys Chief Mentor N R Narayana Murthy said.

“The fact that there may be a slowdown in the US means people will become much more concerned over better value for money...we could look at it as an opportunity,” Murthy said.

The Indian IT industry fears that a possible slowdown in the US economy could lead their companies to cut IT spending.

As Indian IT companies are earning major revenue from the US, recession is being looked at as having a negative effect on the topline.

Murthy said that instead of an adverse effect, it was more likely that India benefits if the US economy, the world's biggest, witnesses a slowdown.

“The focus on better allocation of money means a greater opportunity for India,” he said adding that the Indian IT companies were reasonably well placed to withstand the shocks if any.

Earlier, Murthy inaugurated public sector Bank of Baroda's financial supermarket, N M Chowkshi Business Centre, and its 1,575th core banking branch in Aizwal, Mizoram.

Bank of Baroda Chairman and Managing Director A K Khandelwal said the lender has 88 per cent of its business on the core banking platform.