It is evident that the differences between Western and Eastern European countries are dying. This has been only because of European Union which is a major catalyst for Europe’s amalgamation.
European amalgamation has opened up huge market for Indian IT companies with manifold market opportunities.
However, it is a fact that Indian IT industry is going to face major threats post Brexit.
Indian IT outsourcing industry generates around 32% of revenue from Europe. Most Indian IT companies have their European presence headquartered at UK. They use UK as the portal for business across Europe. One of the major difficulties Indian companies could face is the possible decline in the value of British pound, ambiguity about policies between UK and Europe as well as revision in financial and banking systems.
There could be a “decline in the value of the British pound, which could render many existing contracts losing propositions unless they are renegotiated,” Indian IT industry body Nasscom said in a statement.
Keeping this in view, it is conspicuous that Indian IT companies may need to authorize separate presence and dedicate a new team for Europe after the fallout.
We already know that Germany, Italy, France and UK from EU are one of the largest economies of the world, out of which Germany has the highest GDP and highest purchasing capabilities. Within Germany, Hannover is the capital city of Lower Saxony, a northwestern state in Germany. Hannover holds its importance for various industries as it hosts world’s largest exhibitions and trade fairs like CeBIT for various industrial sectors. Its strategic geographical location is in close proximity to major other states of Germany and has a very strong road as well as sea connectivity. As a matter of fact, Hannover government also supports Indian IT companies to form subsidiary in Hannover, Germany with zero cost under Government Incentive Program.
Indian IT industry will be growing an exponential rate in future provided a well curated strategy is followed for business expansion in European region. It totally makes sense to have a local presence in Europe for effective business expansion.