Over the past fortnight, commentary and numbers from the two large technology services companies have raised eyebrows as it points to weak growth in the IT services sector.
The Covid outbreak pushed the world into a global lockdown and consequently brought business activities to an abrupt halt with unprecedented uncertainties. However, technology proved to be a boon in these challenging times and played a crucial role in arresting a complete global disruption by enabling the continued functioning of human activities despite imposed lockdowns. In this backdrop, the IT sector has witnessed unprecedented demand for online banking, online shopping, and many other digit ..
IT sector has witnessed unprecedented demand for online banking, online shopping, and many other digital platforms comprising entertainment and business. Moreover, Digital transformation and cloud transformation, too, have become imperative as accessing and maintaining data from remote places have become far easier and efficient.
North America region is one of the major geographies contributing around 60% of the top line of most of the Indian IT services companies, witnessed momentum gaining in its IT spending. The demand scenario continues to remain resilient despite challenging macroeconomic conditions. While the US elections may marginally impact allocation towards IT spends in the near term, we remain cautiously optimistic on the US business from a medium to long-term perspective.
Almost all the companies witnessed strong deal wins while their order books remained at an all-time high. Moving forward, a low-cost offshore delivery center would further help the IT companies’ clients to reduce the total cost of ownership of IT.