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Protests Force Indian IT Firms to Close Down for a Day

by: Karen Cayamanda

Wednesday, July 7, 2010 | Outsourcing News |

Due to the nationwide protests of opposition parties as they criticize fuel price increases, several major IT services firms in India - TCS, Wipro, and Infosys - were forced to cease operations last Monday which turned out to be a holiday to observe the US Independence Day.

Infosys Chief Executive Krish Gopalakrishnan said they stopped operations last Monday, but arrangements were done so those who were assigned to take on BPO projects were still able to work. On the other hand, a Wipro spokesperson said work was not affected.

Nasscom, India’s software industry trade body, warned that this had a negative impact on the position of India as an outsourcing destination. According to Sangeeta Gupta, vice president of Nasscom, if the US Independence Day was not observed last Monday, the one-day stoppage of operations would have a much greater impact to the industry. “For the BPOs, the impact was less and the holiday in the US came as a blessing in disguise, but for the IT companies... the business sentiment got hit,” Gupta said.


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