The business community of India is busy in discussing the impact of finance giant Lehman Brothers’s bankruptcy on Indian economy. Still business experts are analyzing the status of Indian finance market after this biggest incident of bankruptcy in world history. I, as a software professional, trying to find out its impact on Indian Software outsourcing market. According to latest news sites and channels, Lehman is client of 14 Indian software companies. Actually Indian software giants are expecting better results in this quarter but after this incident, IT firms are not expecting significant contracts in the banking, financial, securities and insurance sectors. Lehman Brothers has around 550-700 crore rupees projects outsourced to Indian IT firms. Now the companies whose major client is Lehman will have to face huge losses.

Also around 2500 Lehman employees in its Indian branch are likely to get pink slip by the end of this month. Even in other IT majors, layoffs are taking place on large scale. The honeymoon of Indian software companies is over as now they can’t manage a big free pool of software professionals, sitting idle. IT companies margins have already been affected by the US slowdown and fluctuation in dollar prices as US companies accounts for more than 60 per cent of their revenue. IT major like TCS, Wipro, Infosys, Satyam etc. are worried with happenings on Wall Street. There is a old proverb the when a big tree falls, it directly or indirectly affects all other surrounding tree and small plants. So Lehman is a big tree, it has fallen and Indian IT firms are small plants surrounding this big tree. No doubt, they have to face the impact and be ready for new challenges.