Narayana Murthy, the founder of Infosys, views the tech layoffs in the United States as a chance for India to seize an opportunity.
Despite concerns among India's domestic IT companies about a potential slowdown in the U.S. economy resulting in reduced tech spending and projects in India by American firms, Narayana Murthy believes that Indian IT firms have an opportunity to benefit instead.
“Whenever there is a downturn in the U.S. or in the developed world, there is a bigger opportunity for countries like India, particularly in my sector, which provide better value for money,” Narayana Murthy told CNBC’s Tanvir Gill.
“In a downturn, the market shrinks a little bit and our charter is very clear. We work even harder and then we take a slightly larger market share and you will not have any issue of job losses,” said Murthy.
The second-largest IT company in India employs over 346,000 workers globally, spanning regions from the Asia-Pacific to North America, Europe, and the Middle East.
In a LinkedIn post by Krina Mehta, the co-founder of U.S.-based offshore software development company Fortune Infosys, numerous companies choose to outsource software development to India due to the combination of quality work and lower costs.
As per Peerbits, a custom software development company, businesses can achieve a cost reduction of 20% to 30% in their technology spending by outsourcing their custom software development requirements to India.
Opportunities that lie ahead
Narayana Murthy noted that iPhone maker Apple will be moving some of its production to India.
In response to production disruptions caused by a Covid outbreak and workers' protests at the largest iPhone factory in Zhengzhou, China, Apple initiated the assembly of its flagship iPhone 14 in India last year.
At present, Apple produces approximately 5% to 7% of its iPhones in India, which is a significant increase from the 1% produced in 2021. India's commerce minister has stated that Apple intends to eventually manufacture 25% of its iPhones within the country.
American companies like Generic Electric and Microsoft have research and development centres in India.
