Indian IT outsourcers escape tsunami damage

IT and BPO centres in one of the Indian locations hit by the Asian tsunami disaster have emerged largely unscathed, according to city analysts.

The city of Chennai (formerly Madras) is on the South East coast of India in the state of Tamil Nadu just north of Sri Lanka and is home to some major offshore IT facilities belonging to the likes of Cognizant, Infosys, Perot Systems, Syntel, Wipro and Xansa.

While worries about whether IT facilities had survived the tidal wave pale in comparison to the human suffering and tragedy - there are almost 8,000 victims in Tamil Nadu alone out of the total 140,000 confirmed deaths to date - latest reports suggest it is business as usual in Chennai.

A report from Wachovia Securities citing various sources on the ground in India said there has been no meaningful financial impact on offshore IT operations or communications in Chennai as a result of the Boxing Day earthquake and tsunami. The wave reached a quarter of a mile inland in the region, affecting mainly the fishing industry and hotels.

A "handful" of employees and their families have been lost in Chennai but no operations were affected and the Wachovia report says there are numerous accounts of IT professionals stepping up with both financial aid and hands on support for the victims.

"Even clients are offering support. This will only reinforce the import role that IT plays in the strongly growing Indian economy," the report said.

The report also indicates that many of the Indian IT and call centre workers helping the relief effort are doing so in their own time by using annual leave and weekends.

Wachovia concludes that the tsunami could add another level of disaster recovery planning questions, although most offshore facilities are already more than capable of meeting earthquake standards.