India's software services export industry is getting ready for a phase of uncertainty and disruption with chances of cuts in IT spending and steep currency variation after the Brexit.
Europe is the second largest market for country’s BPO and IT industry, which contribute 30 percent of the industry's export revenue with Britain alone contributing 17 percent.
According to Nasscom, uncertainty surrounding protracted negotiations on terms of exit and/or future engagement with European Union could impact decision making for large projects."
With decrease in value of British pound, many prevailing contracts could lose propositions unless they are renegotiated.
IT firms in the country may also need to set up separate headquarters/operations for EU, which may lead to some disinvestment from Britain.
Another apprehension is around the mobility of skilled labour across EU and UK which could be impacted.