"Europe is beginning to look better. Brexit has hurt the UK. America... We have to see what happens. Some industries are going quiet. So, we need some time, it's too premature to say anything. In 30 days, we will have a clear picture," he added.
"We have to wait to know the real impact of Brexit.It's too premature how companies are going to react. See what's happening is all business in the UK has come down by 10 per cent in rupees because of currency impact. And (the) UK is about 15 per cent of India's exports. So, 15 per cent (10 per cent of 15 per cent) means, it will come down by 1.5 per cent (currency impact). Australian currency is appreciating. We do not know how Euro will behave in the next three months. So, we have to wait. It's too uncertain to take a call," he said.
On what Indian IT companies have to do to improve operational efficiency and cost-cutting, the Chairman of venture capital fund Aarin Capital Partners, and Manipal Global Education, said the sector has to automate and become more productive but added that they are already doing that.
"They have to get into the consolidation mode, buy up smaller companies... Because the industry is consolidating and they must become cost-efficient which is not difficult. I think they are all doing that, people know it, they have been through ups and downs for the last 20 years. It's a mature industry. They have got good management. You have to give them some time," Pai said.
He denied suggestions that the IT services industry is witnessing retrenchment of employees, and stated that it's a "normal attrition".
Pai, a former Chief Financial Officer and HR head at Infosys, termed as "very normal" the increasing number of start-ups shutting shop.
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