Rising bankruptcies among global retailers to hurt Indian IT firms

Retail majors JC Penney, Neiman Marcus and Aldo Group collectively owe $8.7 million to TCS, say bankruptcy filings

Indian information technology (IT) services companies are likely to face more pain. Crippled by the Covid-19 pandemic, US and global retail chains are increasingly filing for voluntary bankruptcies. Retail is the largest vertical for the Indian IT services companies after banking, financial services and insurance.

In 2019-20 (FY20), the top five Indian IT services companies derived around 14 per cent of their overall revenue from this vertical. “The Covid-19 pandemic has brought in unprecedented issues for the retail industry, which will trigger significant tech spend cut,” stated a BOBCAPS report. 

In this financial year, the top five Indian IT firms