Shares of major information technology (IT) companies were trading lower in the early trade on Friday after a report said IT outsourcing contracts of more than $1 billion currently executed by Indian companies are at risk of termination because Boeing has halted the production of its flagship Boeing 737 Max jets with effect from January.
“Usually outsourcing contracts have safeguard clauses, which are likely to protect IT firms from losses (in the case of termination). But, profitability will definitely be hit in the short run,” the report added quoting Sanchit Vir Gogia, founder and CEO, Greyhound Research, as saying.
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Technology & Innovation Research & Advisory firm. To read more about him, click here.
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