The top-tier Indian IT companies are unlikely to be affected by the sovereign debt crisis in Europe, Indian technology analysts believe, even as software firms prepare to announce their first quarter earnings this month.

Over the last few months, countries like Greece, Ireland and Portugal have been struggling with spiraling government debt, but the crisis has not spilled over to the French and German markets which are more crucial for the $60 billion Indian IT sector. Overall, Europe contributes 30% of the total IT industry revenues, with the UK being the second largest IT/ITeS market with around 18% after the US, followed by continental Europe, which accounts for 12% of India?s export revenues.

?Tomorrow, if the crisis spreads to the UK, Germany and France, it will impact the IT companies as it forms a major part of their revenue. The contribution from rest of the Europe is just about 0.5%, having almost zero impact,? said Srishti Anand, IT analyst, Angel Broking.

Analysts are keeping a close watch on how mature software markets in continental Europe react to the ongoing debt issues in southern Europe. S Gopalakrishnan, chief executive, Infosys, has expressed some mild concerns over the latest developments in Europe.

?I don?t think anybody can predict what will happen, but there will be concerns if the debt crisis spreads. As of now, the industry has not seen any blip but we don?t know yet,? he said.

European governments along with IMF are trying to address this issue and hopefully with lessons learnt in 2008 the situation is likely to be tackled better, Gopalakrishnan noted.

Som Mittal, president Nasscom, feels there will be no impact for the IT sector in the short term.

?Last year, Europe?s growth rate was slower than that of the US. While there is concern about the crisis spreading further, I don’t think it will happen,? added Mittal. Nasscom points out that the Germanic countries are the largest IT and BPO markets in Europe. These economies spend over $100 billion on IT services, of which over $46 billion is purchased.