Coronavirus outbreak quandary for IT majors

Indian information technology (IT) firms such as Infosys, TCS, Wipro, HCL Technologies, Mindtree etc are facing a quandary as their employees fear traveling to on-site jobs following the novel Coronavirus or COVID-19 outbreak in Europe, which is the most affected region outside China, with many countries imposing a lockdown and virtually sealing borders with different countries in an attempt to stop the infection.

Though, above mentioned Indian IT major have encouraged their onsite staff to work from home, but some critical projects need employees at client offices.

Managers at technology services companies are dealing with not only employees’ concerns, but also over how to bill clients based on the work delivered.

Some tech services companies say only about one-fourth of their employees are in a position to work from home.

With restriction on movement of people following the scare, Indian IT companies’ ability to deliver services on-site could get severely impacted but that could be addressed to some extent by working remotely.

Meanwhile, as business of most of clients getting impacted by the coronavirus outbreak and likely lower discretionary spending as a result, growth for India’s IT services sector is going to be a big challenge in the coming fiscal.

Earnings guidance and revenue growth of Indian IT companies for next year will be be very challenging.

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