Damaged undersea cable not to affect Indian IT, ITeS industry: study

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New Delhi, Feb 2 (UNI) Despite the flutter among internet users in different parts of the world due to the damaged undersea cables in the Mediterranean, the country's IT and ITeS industry was running as usual, an industry chamber study suggests.

A study by industry body FICCI shows that a majority of service providers felt no impact of the sudden disruption in the international undersea cables close to Egypt's Alexandria coast.

A majority of the IT and ITeS firms, accounting for nearly 70 per cent of the industry, have not been impacted by the undersea cable damage.

In the case of remaining, there are varying degrees of disruption and these firms have already put in place contingency plans to deal with the existing situation.

High on the agenda of such companies are measures to conserve bandwidth. They are also in regular touch with their service providers to see how alternative arrangements can be made to tide over the situation.

Some companies are also drawing plans to diversify their source of bandwidth suppliers.

Many companies said there was no substantial loss as they were using robust technology and had put in place redundancy plan that allows them to pick up extra bandwidth from multiple services providers.

While multiple routes of connection and tie-ups with alternate services providers saved the day for several companies, a few cases of severe work restriction were also reported, the study adds.

The study suggests that most high technology-oriented companies felt no impact of the disruption, while medium and small-sized companies with a single source of bandwidth supplier are adversely affected.

There were companies who have adopted flexible work schedules for their employees and they faced no problem while operating from office, but people working from home are facing difficulties due to the slowdown in the home Internet connection, the study adds.

An official from a mid-sized 'information and analytics' company with a single source of bandwidth supplier said there has been a pure productivity loss of almost 50 per cent over the last few days.

Due to disruption in the Internet connection, the company had to ask many of its employees to stay at home and had also reduced the number of shifts from two to one.

The main problem faced by many small and medium-sized Knowledge Process Ooutsourcing (KPO) and Business Process Outsourcing (BPO) firms is the reduced frequency of updation of their 'information sources' that form the backbone of the work carried out by these firms, the study says.

Many companies were not able to work on their near-term 'deliverables' and they are also not able to send completed assignments that are in the pipeline to their clients, the study adds.

The study shows that in the context of the disruption, the small and medium-size companies are actively working for putting in place high technology frameworks even if these are costly.

Companies are also planning to invest in multi-layered redundancy structures, so that in case of any adverse development in the future, the functioning of their processes is not affected, the study adds.

The respondents also felt that given the importance of the IT and IT-enabled service exports, the bandwidth service providers should step up their efforts to increase capacity as well as enter into international cooperation agreements for common utilisation with service providers from other countries.


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