The fallout from the US subprime mortgage crisis reverberated beyond the financial services sector on Friday when Capgemini, the French IT services group, reduced its outlook for its Indian outsourcing unit Kanbay as a result of the market turmoil.

“The subprime crisis is reducing the volume of work Kanbay is getting as banks seek to cut costs,” Nicolas Dufourcq, chief financial officer told the FT. “This in turn is going to have a knock-on effect on Kanbay’s sales growth for the second half of 2007 and 2008.”