Cut ops: US, Europe firms tell tech vendors in India amid Covid-19 outbreak

Experts say hospitality, manufacturing clients may hold back spends

Enterprises in the United States, the United Kingdom, and Europe, which have halted operations or have significantly reduced their scale owing to Covid-19, are pressurising Indian IT services vendors to reduce their level of support and maintenance functions.
 

People in the know said this could be seen as a precursor to renegotiation of pricing, which clients may take up with IT firms in coming quarters.

“Though there have been no cancellations of contracts by invoking the force majeure clause, a number of clients — especially in the worst-affected sectors like travel and hospitality, oil and gas, as well as