Nasscom Urges Member Firms to Postpone Travel Amid Middle East Turmoil
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New Delhi, March 2 (NationPress) - The National Association of Software and Service Companies (Nasscom) has urged its affiliated companies to postpone travel plans to impacted regions due to the rapidly changing circumstances in the Middle East.
Nasscom also recommended that these companies facilitate remote work options for employees currently present in the affected areas, according to their official statement.
“We are consistently communicating with the Nasscom Middle East Council and encourage all personnel in the area to maintain regular contact with their local embassies, ensuring they heed all precautions as instructed by the relevant authorities and employers,” the organization stated.
At this moment, industry operations remain steady, although member companies are on high alert and ready to implement additional measures if necessary.
“The safety and security of employees is the topmost priority for our industry,” Nasscom emphasized.
The ongoing conflict involving the US, Israel, and Iran raises significant concerns for the exporting sector, as indicated by industry analysts.
“Regarding engineering goods, Saudi Arabia and the UAE are critical markets for us. They serve as a gateway for our exports to the WANA region. The escalating conflict poses a risk of disrupting engineering exports and could also impact key trade routes,” remarked Pankaj Chadha, Chairman of EEPC India.
Experts in geopolitical matters have suggested that the Strait of Hormuz, a vital passage for 20% of global oil supplies, could be jeopardized.
“This situation could lead to a rise in energy prices and significantly increase freight costs. We are already facing tariff pressures from the US, along with the repercussions of the Russia-Ukraine conflict. The latest developments only exacerbate our concerns and could severely impact our exports,” Chadha added.
The overall environment is indeed very unstable. Trade disruptions in regions like the UAE and Saudi Arabia are likely to have a considerable impact on our shipments. When combined, these factors are expected to raise input costs, further straining our revenue and profitability,” stated EEPC India.