Day two of the Nasscom Summit saw IT majors such as Wipro and Infosys sounding caution. Wipro's TK Kurien expects more new deals but says it won’t be enough to offset the shrinkage in the existing pipeline, while Pravin Rao of Infosys says the global environment remains volatile and Europe is a big spot of bother. Rao also sounds caution on currency headwinds.
IT companies are now facing the fact that tradition core IT services that contributes to majority of revenues are actually seeing a decline by 70-80 percent and the digital spending uptick of 25-30 percent cannot make up for the loss in traditional services. Hence, individual IT companies will now have to adapt to the changes and change their structure.
Companies such as Infosys and Wipro that are already at the helm of change may find it slightly difficult to be able to adapt as fast as other players.
“There are threats out there. So how every company shapes up opportunities and weighs it versus strength, that is where the impact is going to come,” says Kurien.
"You also have to look at what’s happening around the world. There continues to be volatility while in North America things seem to be reasonably better, a greater deal of confidence built in Europe, you still see undercurrents of challenges, there is Greece and other things. Then you are seeing the impact of oil price. In some industries it could be positive, some could be negative. So, the situation continues to be little bit dynamic and volatile," says Rao.
IT and BPO players at Nasscom are also hopeful that the government digitization drive will be able to wing in a significant uptick in revenues atleast by mid-2016 or mid-2017.
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