The tremors caused by the US subprime crisis has hit Indian shores, buffeting sections of the Indian BPO industry. WNS, a large player in this space, recently announced that that one of its clients, First Magnus, a us mortgage firm, had filed for Chapter 11 (bankruptcy protection).
This will result in its topline shrinking by $20 million (Rs 84 crore) and bottom line by about $4 million (Rs 16.4 crore). The company, however, declined to speak to BT on the subject.
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At a press briefing, Amitabh Chaudhry, CEO, Infosys BPO, which also had an exposure to GreenPoint, said the impact of the crisis "will not exceed $1 million (Rs 4.1 crore) in revenues, as the company deals mostly with larger mortgage firms, which are expected to weather the storm.
Says NASSCOM President Kiran Karnik: "Some small players will be affected, but overall, there will be no major negative impact."
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