Techjockey News

There has been a banking crisis in Europe and the U.S. which has spooked the entire world. However, Sonata Software Ltd. takes it as an opportunity to become a fast-evolving and powerful enterprise, as per Jagannathan Chakravarthi, the CFO (Chief Financial Officer).

The $245 billion Indian IT industry, which obtains 41% of its total revenue from the financial services and banking sector, is probably going to feel the effects of the failure of Silicon Valley Bank, Signature Bank, and Credit Suisse AG in the United States and Credit Suisse AG in Europe.

This will result in fewer earnings in technology as clients would restrain themselves from investing in technology. Also, the payments and deal closures from their side would be delayed.

There have been huge layoffs by the world’s largest IT-based services firm-Accenture Plc. It emphasizes the huge suffering for the larger software services sector. However, on the other hand, due to its low exposure to insurance, banking, and financial services, Sonata Software is unconcerned.

Chakravarthi told in one of the interviews, “It is very less for us, 8–10% probably, but since we do not have much of these, all these challenges are going to help us to come out stronger.” Further, addressing to this issue he said, “With every bout of recession (in the U.S.), there have been winners. We want to emerge out of this one, if it happens, as a fast-growing, fast-evolving company. All of these challenges are going to make us come out stronger. This—the banking crisis—is an opportunity for us.”