Top Indian IT companies to tide over slump

by Dave

The Economic Times

At a time when customers in the US and Europe are tightening their IT
budgets, leading Indian tech firms are betting on their huge pile of cash to steer through the global economic crisis and also to explore M&A opportunities in a world reeling under severe liquidity crunch.

Each of the top six Indian software services firms—TCS, Infosys, Wipro, Satyam, HCL Technologies and Cognizant—have cash reserves in excess of $500 million, with Infosys topping the list at $1.8 billion.

This gives these firms flexibility to invest in newer opportunities including M&A possibilities. “A strong liquidity position is a comfort factor not just for a company, but also for clients and employers,” says Infosys chief financial officer V Balakrishnan. “This also allows for making the right kind of investment
in the current context be it an acquisition, new services portfolio or creating technology solutions.”