Bank of America Corp., the second largest US lender by assets, has started to shift a small part of the projects it had awarded to India’s software companies to local firms or its own centres to ward off political backlash against jobs being outsourced to India, the Mint reported.
BoA, which has given contracts worth millions of dollars to companies such as Tata Consultancy Services Ltd (TCS) and Infosys Ltd—India’s top two software exporters—as well as Accenture Plc, will bring back some of its information technology (IT) projects to service providers in the US or to their own centres, according to at least two people familiar with the development, who requested anonymity.
The move comes at a time when North American and European clients of India’s $108 billion IT industry are cutting spending on technology because of economic headwinds. Banks and financial services companies are also cutting spending on IT, which experts feel might hurt future revenue growth prospects for Indian companies. “Companies like GM, Procter and Gamble, Bank of America, AmEx—they’re not moving everything, they’re starting to move more of it though,” said the first person, who requested anonymity.
Read the full report here