Indian IT services providers including Mindtree, NIIT Tech, HCL Tech, TCS, Wipro and Hexaware may see business from their travel and hospitality vertical impacted significantly this year following downbeat forecasts from key global clients due to the Covid-19 virus outbreak.
“At this point, it is a certainty that the travel and hospitality vertical is going to be hit hard in the next quarter and it’s likely that the effect will last longer. New projects will be cancelled or postponed,” said Peter Bendor-Samuel of US-based advisory Everest Group. Larger IT companies, too, may feel the impact despite minimal revenue from the sector, he added. Mindtree, which provides services to companies such as Marriott and Southwest Airlines, garners nearly 17% of its more than $1 billion revenue from the travel and hospitality sector. Hexaware, too, has significant exposure to the industry.