Impact of subprime on IT cos

The ripple of the US sub-prime mortgage crisis has not only impacted investor psyche, but has left its mark on software companies too. iGate Global Solutions, which also provides services to the mortgage industry, may be affected by the crisis in the second quarter also.

Analysts said this business contributes roughly 6-7% of its total revenues. Analysts tracking the company said uncertainty about the duration of the crisis was a cause of concern.

The rupee’s appreciation against the dollar has only intensified concerns about a slowdown in the company’s earnings.