IT industry body Nasscom today said uncertain global conditions due to S&P's downgrade of US credit rating are unlikely to impact Indian software players in short term but maintained a cautious outlook.
The unprecedented downgrade of the US credit rating last Friday has triggered concerns about its fallout on the $60 billion Indian IT industry, which garners over 60% of revenues from the North America's biggest market.
"Although the global economic environment is a cause for concern, it is not likely to impact the Indian IT industry in the near-term future," Nasscom President Som Mittal said.
However, Nasscom will continue to monitor developments in the US and will maintain a cautious outlook going forward, he added.
Ratings agency S&P has downgraded the US to 'AA'for the from its 'AAA' credit rating as it was not convinced with the efforts being made to tackle the country's debt problems. This resulted in a meltdown of Indian markets.
Software exporters such as TCS, Wipro and Infosys also remain confident of withstanding another downturn.
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"We do not see any material impact from the sell-off in global markets. We are watchful of the evolving global situation but do not see any changes in the business demand environment in North America and Europe.
"We continue to work closely with our customers to help implement their business plans in a volatile environment," N Chandrasekaran, CEO and MD of country's largest software exporter TCS said.
Echoing similar sentiment, Wipro CEO (IT Business) and Director TK Kurien said, "The structural weakness in the economy offers opportunities to IT services companies, as we help global corporation's variabalise their IT, thus making them fundamentally more adept to compete."
He also expressed confidence in withstanding another downturn saying, "we feel that the Industry is far more prepared for any change in the negative macroeconomic environment now than we were in 2008."
Infosys CEO and MD Kris Gopalakrishnan has also said that it is still too early to panic and the industry needs to wait and watch the situation in the US and other markets.