Bank of America staff cuts spell good news for Indian IT firms

Even as the Indian companies gear up for increased business from financial clients, the demand is still being driven by a strong cost-cutting effort.

BANGALORE: Indian IT companies' recent strong positive commentary on greater demand from their top customers was underscored earlier this week by more sombre news for in-house technology staff at Bank of America Corp.

Even as the Indian companies gear up for increased business from financial clients, their biggest customers, that the demand is still being driven by a strong cost-cutting effort was reiterated by BAC's news.

The second-largest US bank, widely believed to be one of the largest clients of Bangalore-based Infosys, India's No. 2 software services provider, was reported to be cutting an undisclosed number of technology jobs, prompting some analysts to say Indian IT firms could benefit.