The 737 Max was grounded in March after 346 people had been killed in two crashes
Major IT companies in India have a direct exposure to Boeing or its suppliers’ ecosystem via outsourcing contracts, the Business Standard reported. The contracts, worth over $1 billion, are now at risk of termination.
The companies include Tata Consultancy Services, Infosys, HCL Technologies, Cyient and L&T Technology Services. The future of the contracts is at stake since the 737 Max was grounded in March after 346 people were killed in two crashes.
The companies are going to be affected in the short run as Boeing happens to be one of the top 10 Indian service providers, sources told the newspaper. “But the larger issue is if Boeing is hit, overall spending in the aerospace segment will also come down,” the report quoted Pareekh Jain, an IT outsourcing advisor and founder of Pareekh Consulting, as saying.
Meanwhile, a December survey conducted by Boeing has revealed that 40 percent of regular fliers are unwilling to fly on the Max, The New York Times reported. The publication reviewed 40 pages of presentation materials and had a slew of conference calls with the company.
As per the publication, Boeing has laid out strategies for airlines so that they may convince travellers about its safety standards.Moneycontrol could not independently verify the reports.
Exclusive offer: Use code "BUDGET2020" and get Moneycontrol Pro's Subscription for as little as Rs 333/- for the first year.