Infosys has begun transferring all of its work from its Russian offices, which employ less than 100 people, to offices outside Russia. In light of the current war between Russia and Ukraine, Infosys said on April 13 that it had no intentions to do business with Russian clients.
This comes as UK Chancellor of the Exchequer Rishi Sunak’s wife Akshata Murthy’s ownership in the firm is being investigated by the British Parliament. According to sources, the firm, which has operations in Russia, reportedly shut down its Moscow office.
Infosys founder N Narayana Murthy’s daughter, Akshata Murthy, owns 0.93 per cent of the firm. “We don’t have any business with Russian clients now, and we have no ambitions to do business,” Infosys CEO and MD Salil Parekh told reporters on April 13 after reporting the FY22 results.
Given the scenario, the firm has begun transferring all of its work from its Russian offices, where it employs less than 100 people, to offices outside of Russia, according to Parekh.
“We operate with a small number of global clients in Russia, for whom we have begun to change, as I just indicated.” As a result, from an Infosys viewpoint, we have no effect within our company at this time,” he added.
Parekh said he couldn’t comment on an individual stakeholder, such as Akshata Murthy’s participation in the business, which the British government has scrutinized.
The conflict between Russia and Ukraine
According to analysts, the Russia-Ukraine war may cause IT businesses to halt investments in Eastern Europe and shift more work to India in the near future. These analysts noted that the region’s boiling tensions might hinder business delivery in the short term, leading to pricing pressure and a delay in new transactions.
Europe and the United Kingdom are the largest markets for IT service providers after the United States. This move also comes at a critical moment for the IT services industry, rising even as companies struggle to find enough personnel to meet growing business demands.
Eastern European expansion
Indian IT firms have progressively expanded their presence in the region, utilizing it as a nearshore centre to support European clients. In the face of increased demand for technological services, the availability of inexpensive IT expertise was a plus.
According to Everest Group research, there are between 70,000 and 100,000 highly skilled professionals in digital engineering and IT capabilities who may be affected. Nearly 30,000 work for third-party service providers in the banking and financial services, retail, automotive, and healthcare industries. About 20,000 people work in global business service centres in Ukraine, with another 30,000 working for third-party service providers and GBS in Belarus and Russia.