Infosys Shares Down 1.1% On RBS Effect

The Royal Bank of Scotland’s decision to shelve its IT deal with Infosys may have hit the Indian company’s stocks on Tuesday but the development could have a ripple effect on many such projects for the IT sector and result in more ramp downs.

Industry watchers pointed out that this development could result in more bad days for companies as well as employees.

“It is definitely worrisome and the announcement does not inspire confidence about the capability of Indian outsourcing companies,” said Sanchit Vir Gogia, Analyst at Greyhound Research.

Then there are technology-related shifts that enterprises are going through such as cloud computing, which helps companies to rent instead of own a piece of software.

“Cloud computing is changing the rules of the game very fast and companies are grappling with it as it changes the revenue model for system integrators completely,” said Gogia.

Source: Hindu Business Line

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