According to Nilesh Shah, the Atos and Temanos crises might help Indian IT businesses

According to Nilesh Shah, the Atos and Temanos crises might help Indian IT businesses

According to market analysts, the heavily indebted French corporation Atos is about to fail, and its clients will start doing business with other IT firms—many of which will be Indian IT companies—as it shifts its debt.

Nilesh Shah, managing director of Kotak Mahindra Asset Management, said at the PMS AIF World event on February 23 that two significant international information technology (IT) corporations that are on the verge of bankruptcy might potentially increase revenue for Indian IT companies.

Atos, a heavily indebted French business, is on the brink of bankruptcy after seeing a roughly 60% decline in share price during the previous six months. Following a report by Hindenburg Research a week ago about roundtrip sales, fake alliances, substantially stretching out contract renewals, backdated contracts, and virtually nonexistent R&D spending, Temanos is another firm on the same route. The business received criticism for other traditional issues including overcapitalization. Accounting Warning Signs.

Shah predicted that Atos would most likely file for bankruptcy and that clients would move their business to other IT firms. According to Shah, Indian IT businesses will get a significant portion of this revenue.

"Temanos, a company that offers fundamental banking systems, will also file for bankruptcy. It's quite probable that Temanos's two leading core banking businesses in India would get a portion of its business," Shah said. He went on to say that it is quite probable that customers would choose Indian IT firms with solid financial records and performance histories for their company.

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Shah said that while the technology industry would not yield returns for the next three to six months, there are still plenty of chances in the space, therefore investors can start building their portfolio now by accumulating these companies.

According to Shah, Indian IT organizations are now focused on cyber security and storing cloud computing instead of infrastructure administration, code authoring, and application maintenance. In a similar vein, he stated these businesses would also use artificial intelligence (AI) to provide superior solutions. According to Shah, they will reinvent themselves and use AI to provide their clients quicker, less expensive solutions.