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No great impact of GM bankruptcy: Wipro

June 03, 2009 13:57 IST
Source:PTI

Software exporter Wipro Ltd does not see a significant adverse impact of the bankruptcy filing by its 'valued client' General Motors though it has dues outstanding of $8 million from the US carmaker.

"General Motors accounts for less than one per cent of the Wipro's IT Services segment revenue, and our assessment is that a substantial portion is expected to continue", Wipro said.

"Based on our current assessment, we do not expect significant adverse impact on account of this development (bankruptcy filing)," it added.

The outsourcer said it is supposed to get $8 million from the US firm.

Wipro further added that it is in constant talks with the firm to monitor and assess the situation.

America's largest carmaker General Motors this week had filed for bankruptcy protection, making it America's fourth-biggest bankruptcy in history and the biggest in the industrial sector.

Hit by the global recession and plunging sales, GM has become one of the biggest collapses in corporate history.

Analysts tracking the sector feel GM's bankruptcy could impact Indian service providers in a small but significant way, with the immediate impact being delayed payments, followed by existing projects getting ramped down.

Source: PTI
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