Brexit
"TCS and Orange County have agreed to settle an ongoing dispute regarding the joint development of a Property Tax Management System. Both parties had asserted claims against each other, but neither admits any liability," said a TCS statement. In Picture: An employee of Tata Consultancy Services (TCS) works inside the company headquarters in Mumbai March 14, 2013.Reuters

Nasscom has urged policymakers from the European Union (EU) and the UK to adopt measures to alleviate impact of Britain's exit (Brexit) on the Indian IT services exporting sector, says a PTI report.

"NASSCOM urges policy makers in Brussels and London to provide greater clarity and guidance on the next steps as soon as possible, so that our businesses have the certainty they need to continue to invest in UK and Europe," NASSCOM President R Chandrashekhar was quoted as saying.

Indian IT companies expressed concern over short-term risks to businesses as they get ready to pull through the consequences of Brexit from the EU.

Infosys CEO Vishal Sikka said the company was "watching the situation closely" and that he was expecting a possible short-term impact on currency and business.

The company's chairman R Sheshasayee told the Economic Times that political events like Brexit are beyond the scope of business operations but added that the company is working on "hedging strategies" to temper macro level risks.

"There is also an immediate impact due to the currency, the GBP has already fallen by 8-10%," said Sangeeta Gupta, senior vice president of Nasscom.

Wipro was quoted as saying that the immediate risks were labour mobility, currency fluctuation and a different financial system.

"Wipro has been present in the UK for over two decades and today employs over 4,000 people there. We remain committed to the UK and are optimistic that the close ties between India and the UK will further strengthen in the long run and open up new opportunities for us," the company said.

There was no comment from TCS and HCL.

A 2016 Grant Thornton India Tracker report provided a picture of Indian business scene in Britain. India's investment in the UK increased 65% in 2015, making it the third largest FDI source for the country, says the report.

Two IT companies figured in the report's list of largest Indian employers. HCL Technologies was named the 7th largest employer with above 3,100 employees, while Tata Consultancy Services (TCS) took a close 8th place with more than 3,000 employees.

The report also said the combined tax revenue payed by the Indian firms to the UK went up by £150 million in 2015 compared to the previous year.

Echoing Nasscom's earlier warnings, Ganesha Natarajan, former vice-chairman of Zensar Technologies, said: "Lots of UK companies have trans Europe operations, Britain's exit will mean reorganization and impact on their business volumes as well, it would shrink their wallets and thereby spending on IT will be hit immediately." 

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