Some IT firms can be impacted by Japan disaster

MUMBAI | BANGALORE | NEW DELHI: Executives at many of India’s large and mid-sized outsourcing firms spent several anxious hours on the phone and internet trying to get in touch with their colleagues in Japan as the tsunami cut through one of the country’s IT hubs of Yokohama on Friday. India’s top IT firms as well as several smaller ones employ hundreds of people in Japan.

From an IT perspective, Japan is the third largest IT market globally. However, India’s IT exports to Japan are still small at around $ 1 billion or 2% of total IT exports. The Indian outsourcing industry will not be impacted to a large extent, but business to individual companies, especially small and medium firms with Japan exposure, could be affected.

“Japan is a potential large IT market for us, and sales to Japan have been growing in double digits, though lower than what total Indian industry grew,” said Ameet Nivsarkar, vice-president Nasscom.

Top IT firms, Tata Consultancy Services and Wipro, employ nearly 400 people there, while Infosys employs upwards of 200 staff.