US auto troubles to dig Indian IT majors
The Indian Information Technology majors , Infosys, Wipro, TCS etc. are the top oursourcing companies for US auto majors Ford, GM and Chrysler. Obama administration has rejected their latest restructuring plan and asked them to come back with revised restructuring plan within the next few weeks.
Now, in the revised restructuring plan, the US Auto majors are likely to show a sharply toned down approach towards outsourcing. That could mean a sharp drop in top line and bottom line for the Indian IT majors. That could spell more trouble for the Indian economy, because that could trigger more outsourcing cuts by other US companies.