US fiscal stimulus will keep IT downside in check: Infosys

BENGALURU: InfosysNSE 2.33 % CEO Salil Parekh said the fiscal stimulus that most western economies have announced, especially the US, is a huge positive for the IT industry. The comment comes in the backdrop of the pandemic and lockdowns that have caused consumer demand to collapse around the world.

“We don’t see any of our clients in that situation (bankruptcies) as there is tremendous amount of fiscal support in the US market. There is nothing that we see today that makes us believe there is a concern,” he told TOI in an exclusive interaction. However, there have been some requests for price cuts and credit extensions. And Parekh admitted that there will be some near-term challenges. “We don’t have a good estimation and that’s part of the reason why we suspended (revenue) guidance,” he said.

The US government’s massive $2-trillion stimulus is expected to provide liquidity to companies, including banking and financial services that are the biggest outsourcers of IT.