Nortel bankruptcy may not hurt Indian IT cos much
The bankruptcy filing of networking vendor Nortel is expected to have only a marginal impact on Indian IT companies. Canadian telecom giant Nortel is a long-time outsourcer to Indian service providers.
By ET Bureau |
MUMBAI/BANGALORE: The bankruptcy filing of networking vendor Nortel is expected to have only a marginal impact on Indian IT companies. Canadian telecom giant Nortel is a long-time outsourcer to Indian service providers. The top three Indian IT service providers ��� Tata Consultancy Services (TCS), Infosys Technologies and Wipro ��� as well as a few smaller firms like Sasken Technologies are vendors to Nortel.
TCS, which is set to announce its third quarter results on Thursday, said its exposure to Nortel was very minimal and less than 1% of its revenue. ���Both Infosys and TCS are very strong in the telecom vertical but on the service provider side. Wipro does work for Nortel in other areas as well,��� said an analyst with a domestic brokerage. He did not expect the impact on these companies to be significant.
The fifth-largest exporter, Tech Mahindra, which is focused only on the telecom sector, said it has no exposure to Nortel after the last deal for $140,000 was over six months ago. Tech Mahindra���s product engineering division did work for Nortel, Alcatel and Motorala. ���Nortel has been in trouble since 2001. Four years back, they brought in a new CEO.
This (bankruptcy filing) is not entirely a surprise to us,��� said one of the outsourcing vendors.
An analyst following developments in the networking industry said that Wipro had acquired 3D Networks, which got a majority of its revenues from Nortel in 2006.
TCS, which is set to announce its third quarter results on Thursday, said its exposure to Nortel was very minimal and less than 1% of its revenue. ���Both Infosys and TCS are very strong in the telecom vertical but on the service provider side. Wipro does work for Nortel in other areas as well,��� said an analyst with a domestic brokerage. He did not expect the impact on these companies to be significant.
The fifth-largest exporter, Tech Mahindra, which is focused only on the telecom sector, said it has no exposure to Nortel after the last deal for $140,000 was over six months ago. Tech Mahindra���s product engineering division did work for Nortel, Alcatel and Motorala. ���Nortel has been in trouble since 2001. Four years back, they brought in a new CEO.
This (bankruptcy filing) is not entirely a surprise to us,��� said one of the outsourcing vendors.
An analyst following developments in the networking industry said that Wipro had acquired 3D Networks, which got a majority of its revenues from Nortel in 2006.
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