CLSA predicts the US economic growth slowing down to 1.3 per cent in 2007 from 3.5 per cent in 2006. Therefore it is expecting a cut down on discretionary expenditures from the US and says ERP-related are likely to be the most impacted.

And Satyam Computer Services appears relatively more vulnerable to this slowdown, says CLSA. The brokerage says this on the basis of three criterion.

Firstly, Satyam and Infosys have high US exposure, while TCS has it comparatively lower. Secondly, 65-70 per cent of ERP work done by Indian vendors is implementation-based and Satyam has the highest ERP exposure of 40 per cent.

CLSA also says that clients with less than $1 million worth of work for Indian IT companies will cut down on it. And growth contribution from below $1-million clients is highest at Satyam.

Therefore, the US slowdown will impact Satyam the most among the other Indian IT companies. But the brokerage also says that this impact will only be medium-term.