US Debt Deal To Benefit Indian IT Sector: Wipro Official

Indian IT companies will benefit from the landmark US debt deal signed by President Barack Obama, said a top Wipro official.

“I think the effect will be positive for the Indian IT companies in medium- to longer terms. The US-based companies or organisations will have more cost management in their mind,” said the IT major’s executive director and chief finance officer Suresh Senapaty.

Hours before the midnight deadline, Barack Obama signed into law a compromise plan to raise America’s $14.3 trillion debt ceiling to avoid a catastrophic US default sending shock waves through the world economy. The plan cleared by the US Congress has increased debt ceiling by USD 2.1 trillion and reduced government spending by USD 2.4 trillion.

He said the deal will not affect margins for the USD 60 million IT services industry in India.

“For us, margin is not sales percentage, but what we make per person,” he said.

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By that yardstick, the Indian companies lag behind the others. “The per person margin of global companies is higher than ours.”