India Inc will continue overseas M&A ride: Kamath

Helping cut costs

As far as the Indian IT service business goes, when your customer is in a bad time and has to cut cost, if you are one of those who can help in cutting cost, then your business should not suffer,” he said.

Mr Kamath also said he expects the cost disadvantage for Indian companies borrowing in the US market to narrow down as the crisis in the US financial system get evened out. “The US has a challenge in terms of the financial system. The other day I was talking to somebody in the US treasury. Their view was they were more than half way through resolving that issue (crisis in financial system). That is good news.

Costs already had gone up. You could easily assume that costs certainly had gone up by 2.5 percentage points. A little bit of good news from the US should start contracting spreads for Indian corporates, which is good for everybody,” he said.

Taken from Business Line

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