INSUBCONTINENT EXCLUSIVE:
The business outlook of IT companies for the ongoing quarter is likely to be affected by restrictions due to the spread of the
coronavirus.
Industry executives said several of their clients have cancelled scheduled visits to India to avoid any potential exposure to
Indian IT companies too have cut down on overseas travel of employees, even as the virus outbreak that started from China has spread to more
than two dozen countries.
While they did not provide exact estimates, companies are preparing for some slowdown in revenue growth from the
risks stemming from concerns among both business travellers and customers
In the fourth quarter ended December, revenue from the vertical grew 26.4 per cent from a year earlier.
Reservation companies and global
distribution services (GDS) providers are also expected to be impacted by the fall in travel volumes, Hexaware said.
GDS companies own and
operate networks that allow transactions between airlines, hotels, car rental firms and travel agencies
These get impacted when the volumes go down.
Customers of the company are also deferring travel, which is likely to affect business
decisions, said Srikrishna
There are also some reverse travel restrictions on our employees travelling from India, employees coming East from West, so that will also
spending by clients due to the virus impact