IT firms need not panic on Donald Trump, Brexit impact long-term: NASSCOM

July 24, 2016

National Association of Software and Service Companies (NASSCOM) said that the industry needs to wait and watch, rather than panic, on the outcome of the US Presidential elections, though it warned of lasting impact of ‘Brexit’ on India.

Republican candidate Donald Trump is a frontrunner for the US President’s post and is widely feared in India for his stance on the outsourcing industry and existing immigration policies.

“You see, IT industry does not have a view on candidate Donald Trump. But President Trump is a different matter”, NASSCOM president, R Chandrashekhar said, to a query on how the domestic IT industry was looking at Donald Trump.

“Indian IT industry actually helps create jobs even ostensibly in United States. This lead us to believe that we can afford to sort of wait and see the circumstances.But we do not need to panic, for sure”, he said.

Meanwhile, speaking on the impact of Britain exiting from the European Union, Chandrashekar said that it may reflect in the second or third quarter results of the domestic IT firms.”The impact may show up in next two or three quarters and it will roll out over a much longer period.

“In terms of large contracts made by big companies, the decision-making will slow down. Impact on some of the large deals could get impacted. Lot of Indian companies used London as base. So that will get re-evaluated”, he said.

According to him; in the longer term, Britain exiting from UK holds opportunities for India.