The knock-on effect of the American sub-prime crisis goes on and on.
According to reports from Data Monitor, it now hits the Indian outsourcing sector.
This is because firms such as First Magnus closing their doors to business and filing for bankruptcy then rolls on to impact their BPO partners, such as WNS,
who are also having issues. WNS have lost $16 million in revenues for
the year and their share price has dropped 25%. Apparently, iGate, EXL and others have also been affected with anything from 1% to 3% of revenues disappearing due to the mortgage market issues.
Data Monitor's view is that this is not a big issue at this stage but an area to watch.
Not a big issue ... not a big issue.
Mmmmm.
I
wonder if Jim Cramer would agree after his outburst the other day on
CNBC. If you haven't seen his hissy-fit, you can watch it on YouTube and it's quite a rant ...
Come on Bernanke. Sort it out.
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...