Business

Russia-Ukraine conflict | Infosys has no intention of doing business with Russian customers: CEO Salil Parekh


In the context of the ongoing Russian-Ukrainian conflict, IT major Infosys made it clear on April 13 that it had no plans to do business with Russian customers.

It also comes at a time when the involvement of UK Chancellor of the Exchequer Rishi Sunak’s wife, Akshata Murthy, in the venture has come under scrutiny in the UK Parliament. According to reports, the company, which had operations in Russia, has closed its Moscow center.

Akshata Murthy, daughter of Infosys founder N Narayana Murty, holds a 0.93% stake in the company.

Speaking to the media on April 13, after announcing the FY22 results, Infosys CEO and Managing Director Salil Parekh said, “We are not doing any business with Russian customers today and we we have no intention of doing business”.

Given the situation, the company has also started to shift all of its work from its centers in Russia, where it employs less than 100 employees, to centers outside of Russia, Parekh said.

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“The work we do is with a small number of global clients in Russia, for which, as I just mentioned, we have started the transition. So at this stage we have no impact on our business from the point view of Infosys,” he added.

On issues related to Akshata Murthy’s shareholding in the company, which came under British government control, Parekh said he could not comment on an individual shareholder.

Russia Ukraine conflict

The Russian-Ukrainian conflict could force IT companies to suspend investment in Eastern Europe and bring more work to India instead in the short term, experts say. The tensions raging in the region may also affect the delivery of short-term business, leading to pressure on prices and a slowdown in new transactions, these experts added.

After the United States, Europe and the United Kingdom are the largest markets for IT service providers. The move also comes at a crucial time when the IT services industry is booming, even as companies face a huge talent shortage challenge to meet growing business needs.

Expansion to Eastern Europe

Over the past few years, Indian IT companies have steadily expanded their presence in the region, using it as a nearshore hub to serve customers in Europe. The availability of affordable tech talent was a bonus, amid unprecedented demand for tech services.

According to data from Everest Group, nearly 70,000 to 100,000 highly skilled workers in digital engineering and IT skills will face disruption. Of these, nearly 30,000 work for third-party service providers in banking and financial services, retail, automotive and healthcare. About 20,000 are employed at global business service centers in Ukraine, and another 30,000 in Belarus and Russia for third-party service providers and GBS.

First post: STI


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