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US attacks to impact IT companies

Our Correspondent in Hyderabad

The terrorist attacks on World Trade Centre and Pentagon will impact on Indian IT companies in the short term, according to Hyderabad Software Exporters Association.

Speaking to rediff.com on Wednesday night, HYSEA president J A Chowdary pointed out 'basically, in the short term, there will be some impact on our IT companies but in the medium and long-term this will throw up opportunities for us'.

Chowdary, a former director of Software Technology Parks of India at Hyderabad, reasoned that in the wake of the menace posed by the terrorist attacks, more funding would be available for high-tech research and lot of money would also be pumped into new projects in the US defence sector.

"All this will enable high technology companies, particularly from India, to benefit in the long term," he added.

The software exports from Hyderabad had touched Rs 19.9 billion in the fiscal 2000-01, showing a growth of 81 per cent, compared to 85 per cent during 1999-2000.

However, the Software Technology Parks of India, Hyderabad and HYSEA had scaled down the export target during the current fiscal 2001-02 to around Rs 30 billion, or an increase of 50 per cent, in view of the slow-down in the US economy.

Now, with the terrorist strikes at World Trade Centre and their impact on the US stock markets, insurance, finance and airline sectors et al, there are apprehensions that this will seriously affect the IT sector in the short run.

Hence, the Indian software exports are likely to bear the impact in the second half of the current fiscal.

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