IT services growth seen slowing as clients curb spending

The cutback on routine IT services is likely to push firms including Tata Consultancy Services Ltd and Infosys Ltd to sharpen their focus on high-margin digital services, analytics and artificial intelligence to cushion the impact on earnings.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Masteryourmoney Earnings
moneycontrol.com

Home » News » Business

Feb 05, 2016, 11.02 AM | Source: Reuters

IT services growth seen slowing as clients curb spending

The cutback on routine IT services is likely to push firms including Tata Consultancy Services Ltd and Infosys Ltd to sharpen their focus on high-margin digital services, analytics and artificial intelligence to cushion the impact on earnings.

Like this story, share it with millions of investors on M3

IT services growth seen slowing as clients curb spending

The cutback on routine IT services is likely to push firms including Tata Consultancy Services Ltd and Infosys Ltd to sharpen their focus on high-margin digital services, analytics and artificial intelligence to cushion the impact on earnings.

Post Your Comments

Share Cancel

IT services growth seen slowing as clients curb spending
Indian IT services exports are likely to grow at a slower pace next fiscal year than in the recent past as global clients rein in technology spending, an industry lobby group said on Thursday.

The cutback on routine IT services is likely to push firms including Tata Consultancy Services Ltd and  Infosys Ltd to sharpen their focus on high-margin digital services, analytics and artificial intelligence to cushion the impact on earnings.

India's IT and software services export revenue is likely to grow by 10-12 percent in the fiscal year beginning on April 1 to as much as USD 121 billion, the National Association of Software and Services Companies (Nasscom) said.

Exports in the current fiscal year ending March are estimated to grow 12.3 percent to USD 108 billion, at the lower end of Nasscom's projection, with digital services seen up 19 percent.

"The pressure of being competitive is forcing companies to increasingly adopt digital technologies and that again presents an opportunity for the industry," the lobby group's president R. Chandrashekhar told Reuters.

The shift towards new services could also trigger a wave of mergers and acquisitions in the sector, after Indian IT companies spent USD 2.4 billion on digital deals in 2015 - three times higher than the year before, Nasscom said.

"To acquire digital skills companies will have to re-skill employees and acquire new technologies and that is likely to continue," it said.

Including domestic sales, total revenue of the Indian IT sector, which accounts for 9.3 percent of the country's economic output, likely rose 8.3 percent to USD 143 billion in the fiscal year ending March 31, Nasscom said.

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
IT services growth seen slowing as clients curb spending

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login