Cyient, TCS Slip Over 0.5% Amid Report Boeing 737 Max Crisis To Hit IT Cos

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.

[Business Standard]


Analyst:

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.

Have a question on this or other Technology & Innovation topics? Click here to set up an enquiry call with Sanchit Vir Gogia.

To receive the latest insights (#GreyhoundStandpoint) from Greyhound Research, subscribe to our Newsletter https://bit.ly/GR_Newsletter.

Greyhound Research is now available on Telegram. To read latest global, independent insights on technology & innovation topics shared everyday, subscribe to our Telegram channel https://bit.ly/GR_Telegram.


Copyright © 2020 Greyhound Research. All rights reserved. You may share this research note using the options made available. Please don’t copy this research note (complete or parts) and distribute over the web and emails. Connect with us if you need clarifications.

Leave a Reply